A national uptick in law school applicants wasn’t enough to prompt a key bond credit rating agency to reverse its negative outlook on New York Law School’s finances.

Moody’s Investors Service on Thursday affirmed the school’s Baa3 bond rating, which is the lowest rating for investment grade bonds and indicates that Moody’s believes the school’s bonds represent a moderate risk to investors. The Moody’s report assigned the law school a negative outlook, saying that the school’s spending of its financial reserves to cover operating shortfalls is “well above” the industry standard of 5 percent. The school’s bonds are valued at about $140 million.