Fitch Sees More Stress for Colleges With Budgets Under Pressure
- Fitch maintains a deteriorating outlook on the sector
- Schools in the BBB and below category face steepest challenges
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Fitch Ratings predicts an even gloomier financial outlook for US colleges and universities, with smaller private schools being hit the hardest.
Slowing revenue growth and steeper costs from inflation are squeezing school budgets across the country. But institutions that are particularly vulnerable are those that are less selective, lack dynamic programming and are overdependent on student fees. Fitch has a deteriorating outlook on the sector; year to date, the firm has revised the outlook downward for seven schools and upward for four.