Ursinus College’s credit rating has slipped down a notch, due in part to its decision to borrow additional funds to build a new facility on the campus, writes Harold Brubaker for the Philadelphia Inquirer.

S&P Global Ratings has downgraded the credit rating of the private liberal arts college in Collegeville from A- to BBB+. As one of the big three credit-rating agencies, S&P said that the downgrade was primarily driven by the college’s plans to take on additional debt of $23 million for the construction of a facility for interdisciplinary academic programs.

At the end of fiscal 2015, the Collegeville institution was already carrying $42.5 million in debt, which means with the additional loan, the college will no longer meet the criteria for S&P’s A- rating.

S&P also cited that declining demand and enrollment uncertainty were part of its decision to downgrade. However, it did emphasize that the institution’s outlook was stable.

President Brock Blomberg commented that the college’s board was ready to risk the downgrade to “further our strategic vision.”

“We are confident and optimistic about our path forward,” he said.

Read more about the downgrade in the Philadelphia Inquirer by clicking here.