NAICU - Negative Credit Ratings Reflect Financial Strain on Small Colleges

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Negative Credit Ratings Reflect Financial Strain on Small Colleges

Chronicle of Higher Education

July 21, 2010

More than a dozen private colleges have had their credit ratings downgraded since the start of 2010, most of them tuition-dependent, less-than-selective institutions facing the challenge of attracting students in a bad economy and a competitive market. Several institutions that were downgraded or saw their outlooks lowered (which could signal a future downgrade) are in the Northeast or the Midwest, where lots of small colleges are vying for a gradually shrinking supply of traditional students.

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