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Financial Outlook Is Brighter for Some Colleges, but Still Negative for Most

Chronicle of Higher Education

January 17, 2011

Moody's Investors Service says the outlook for a relatively small number of well-managed, diversified colleges looks stable in 2011, an upgrade from the negative forecasts that the credit-rating agency has given higher education over the past couple of years. In its latest outlook report, however, Moody's maintains a negative outlook for the majority of higher-education institutions, which it says are too dependent on tuition, auxiliary income, and state support. The Moody's report, which will be available from the company to its subscribers this week, highlights a widening gap between have and have-not colleges.

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