My daughter heard about this school from a friend who enrolled a few years ago. The friend ended up working in one of the offices. The friend told us recently that the school is in very bad financial shape because the enrollments dropped by about 100 students this year. I looked up the endowment and it is less than $20 million, which is not much compared to the other schools. The friend said that the people who work there think the school might go under if the administration cannot turn it around this year. Apparently, the leadership is really bad. On top of that, classes were cancelled for almost a week last month because of a bomb threat and the theater had bedbugs. My daughter decided that this is not the school for her.
I just talked to a dance company owner that has their people come and work with this traveling competitive dance team. She told me that she thinks on many levels that she thinks MMC is on par or better then Juilliard (some of her dancers are there also).
I would investigate further and not really listen to rumors. My daughter goes to a small LAC and All I heard was about their financial woes. She has had a great learning experience and somehow gave her a $4,000 grant to go to South East Asia for her school senior thesis project.
Lots of smaller schools are having issues around the country. How they handle it will be a factor.
Thank you for your thoughtful answer. I took you up on your advice and learned that the school had to sell air rights this year to stay afloat. My husband and I decided that we could not risk 250k for a four year degree from here. My daughter wants to be a science major (probably biology). Looks like NYU or Pace might be better options.
@MarySusanna - I have noticed MMC is recruiting / accepting students more quickly this year than in past years so possibly that’s part of an effort to bolster their tuition income. It’s a school with a long history of success so I have to assume it’s not going to sink without a substantial fight and possibly a reorganization. That said - is your daughter looking to double major in science and MT? You might want to consider schools that offers a BA in MT and not a BFA so there’s crossover with Gen Eds. Both NYU and Pace are BFA programs and they are also, frankly, varying levels tougher for admissions. Pace is an easy academic admit but a very tough artistic admit so don’t be fooled by published admission rates. MMC previously offered a BA Theatre but has switched to a BFA program this year which has generated a lot of new interest. I hope they do well.
Interesting. Need to put out some feelers. Just haven’t heard of anything like that especially since high end companies are still sending their dancers there.
One of the places my daughter was accepted to but went to another BFA college was https://www.emerson.edu/programs/musical-theatre-bfa
Might be too late to apply but it’s a wonderful top notch program. But it’s very competitive.
Good luck.
@MarySusanna, @CaMom13 - I’m following this with great interest. My daughter applied last week (not to musical theater though) and heard back within 24 hours with a Huge scholarship. Of course this was very exciting news but we couldn’t figure out how it was even possible to process her application that quickly.
What exactly does “sell air rights” mean?
So I read up on air rights…this doesn’t sound all that unheard of in NYC, yet to do anything to stay afloat for a year isn’t a good sign.
@Mimi2018 - You know, this conversation was started a while ago and I checked out news and didn’t actually see anything all that scary about MMC’s financial information … so personally I would not let this kind of rumor scare you off. It’s a school that has been around for a long time and it has an amazing location and nice facilities. If it’s a fit for your daughter socially / academically and the price is right - I would call that good news! If you have concerns, go and talk to the school directly. Congratulations to your D! 
@CaMom13- Thank you for your quick response, and the congratulations too!
It may not be a full ride to an IVY league, but it still feels awfully good to be accepted quickly with such a huge merit scholarship.
There’s another post about the school “selling air rights” and poor administration, etc. Not quite sure what to make of it all at this point, but I definitely agree that until we meet with admissions and ask questions, it’s pointless to get too worked up about a rumor circulating on CC…
I did a little research on this. Here is an article regarding Marymount’s current bond rating. It doesn’t seem as bad as some are making it out to be.
Moody’s revises Marymount Manhattan College’s, NY outlook to negative; affirms Baa2
27 Jan 2020
New York, January 27, 2020 – Moody’s Investors Service has revised the outlook on Marymount Manhattan College, NY to negative from stable and has affirmed the Baa2 rating on the Series 2009 Bonds issued by the Dormitory Authority of the State of New York.
RATINGS RATIONALE
The revision of the outlook to negative is based on a significant enrollment decline in fall 2019 and projected weakening of financial performance for fiscal 2020. Marymount Manhattan College (MMC)'s credit profile has weakened in the last two years due to growing financial aid and enrollment challenges. FTE (full time equivalent) enrollment declined by 3% in fall 2018 and a material 10% in fall 2019 which is going to impact financial performance materially given the overly high reliance (93%) on student charges. Low liquidity, with 106 days cash on hand, and weak fundraising remain credit challenges.
The affirmation of the college’s Baa2 rating is due a strong track record of good fiscal discipline resulting in consistently positive cash flows and good debt service coverage, as well as a one-time influx of substantial cash in fiscal 2020. While the fall 2019 enrollment decline of 10% will result in weaker fiscal 2020 financial performance, the college has implemented expense reduction measures to narrow the operating deficit to $1.3 million in fiscal 2020 as compared to $900,000 surplus in fiscal 2019. Additionally, as the result of the 1986 sale of its air rights on one of its buildings, the college has received a one-time $9.6 million influx in cash, which will be booked as in revenue in fiscal 2020. These funds will bolster the college’s flexible reserves and provide the college time to invest in its market and stabilize enrollment. MMC further benefits from its marketable real estate holdings in Manhattan, and its leverage remains manageable from an operating perspective.
RATING OUTLOOK
The negative outlook reflects the likelihood of a rating downgrade if the college is not able to stabilize fall 2020 enrollment and improve financial results in fiscal 2021.
FACTORS THAT COULD LEAD TO AN UPGRADE
- Sustained improvement in student demand, reflected in a stronger yield rate on accepted students and consistent growth in net tuition per student
- Substantial growth of flexible reserves on an absolute basis and relative to debt and expenses
FACTORS THAT COULD LEAD TO A DOWNGRADE
- Inability to stabilize fall 2020 enrollment and improve financial performance for fiscal 2021
- Increased leverage absent offsetting growth in revenues and cash and investments
LEGAL SECURITY
The Series 2009 revenue bonds are secured by general revenues of college and additionally secured by a mortgage pledge on a condominium building and a cash funded debt service reserve fund. All of the college’s debt is fixed rate with level amortization through fiscal 2029. There are no interest rate derivatives. The college is required to comply with two financial covenants on these bonds. It is required to maintain a debt service coverage ratio equal to or greater than 1.25x (fiscal 2019: 1.7x). The college is also required to maintain an Available Assets to Debt Ratio greater than 25% (fiscal 2019: 99%). In the event that the college is unable to meet these covenants, the bond trustee may require the college to retain a management consultant.
PROFILE
Marymount Manhattan College, located on New York City’s Upper East Side, is a small, independent liberal arts college offering programs in the arts and sciences and pre-professional preparation with a niche in performance arts.
METHODOLOGY
The principal methodology used in this rating was Higher Education published in May 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Pranav Sharma
Lead Analyst
Higher Education
Moody’s Investors Service, Inc.
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250 Greenwich Street
New York 10007
US
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Eva Bogaty
Additional Contact
Regional PFG West
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody’s Investors Service, Inc.
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