Regional Publics, Small Privates Most Likely to Face Financial Challenges
May 14, 2020
About four in 10 colleges and universities whose debt Moody’s Investors Service rates are positioned well financially during the coronavirus crisis, one in 10 are heavily exposed to challenges and the remaining half face differing degrees of stress.
That’s according to a new report the ratings agency released assessing credit risks for its U.S. higher education portfolio. Moody’s evaluation assumed a base case of colleges and universities resuming classes in the fall while facing various degrees of declining enrollment, diminished endowment income, falling state funding and lower philanthropic income. Risk would increase if campuses are closed in the fall, the report said.