A credit-rating agency has added a negative tinge to its outlook on bonds sold by Hawaii Pacific University last year to finance the redevelopment of parts of the Aloha Tower Marketplace retail complex in downtown Honolulu for university use.

Standard and Poor’s Ratings Services revised its outlook on the bonds from stable to negative Thursday. The agency maintained its long-term credit rating on the bonds at BB+, which is considered noninvestment grade or junk.

S&P said its negative outlook was influenced by weaker than previously projected financial results from HPU in its 2014 fiscal year ended June 30, escalating costs for the Aloha Tower project and declining enrollment.

S&P said it considers the university’s projection for breaking even financially in fiscal 2015 a "best-case scenario" after a decline in fall enrollment and a $3 million operating deficit in the 2014 fiscal year that was $1 million more than what HPU anticipated.

University enrollment dropped to about 6,700 students in the fall semester from 7,463 students the year before.

HPU said it has adjusted to the challenges referenced by S&P and maintains good financial resources, including investment income from an endowment that supports a stable bond rating.

"Maintaining HPU’s current S&P rating is a strong indicator that our plans are on the right track and it validates the progress that is being made," HPU President Geoffrey Bannister said in a statement.

HPU is pursuing improvement plans that include expanding its downtown Honolulu operations by adding dorms for 300 students, classrooms, a college bookstore as well as a few more restaurants and new retailers at Aloha Tower. Expanding its Hawaii Loa campus in Kaneohe and enhancing its research firm, Oceanic Institute, are also part of a master plan.

S&P noted that HPU management has revised its strategic plan to suspend improvements for its Hawaii Loa campus and Oceanic Institute along with scaling back enrollment growth goals to 6,000 students from 10,000 students. Instead HPU will focus on completing the Aloha Tower project, which has encountered delays.

Hawaii’s largest private university sold $42 million of special-purpose revenue bonds in July 2013 to finance the Aloha Tower work, and aimed to have the dorms ready this fall. HPU held a groundbreaking ceremony four months ago and now anticipates finishing next fall.

HPU plans a second bond issue of about $38 million this year that will provide more money to enhance its downtown presence.