Moody’s: Public colleges face ‘intensified’ credit hurdles

Credit challenges for public colleges and universities have “intensified,” Moody’s Investors Service said on Thursday, and majority of the institutions it rates have a negative outlook due to their reliance on student tuition and government funding, Reuters reports. Only a minority of so-called market-leading universities, mainly rated Aaa or Aa, have a stable outlook because of their strong balance sheets and diversified revenue. Moody’s said this smaller group can better withstand the pressures affecting the entire higher education sector: the stumbling economic recovery, meager investment returns in their portfolios, funding cuts and a decline in households’ net worth…

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