May 20, 2024

Ratings Agencies Post Mixed Outlooks for Higher Education

Author: Ray Schroeder
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By Rick Seltzer, Inside Higher

Two ratings agencies offered differing opinions Tuesday on the future of the U.S. higher education sector. Moody’s Investors Service raised its U.S. higher education outlook from negative to stable as it sees steady revenue streams, solid reserves and strong operating performance at large comprehensive universities bolstering the sector over the next year to 18 months. Fitch Ratings kept a negative outlook in place, predicting continued operating pressures as challenges persist from a moderate number of students graduating from high school, limited public funding levels and slowing tuition growth.

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