From Inside Higher Ed

Moody's today is affirming that it continues to believe -- as it first stated a year ago -- that the financial outlook for higher education is negative. As a major credit-rankings agency, Moody's views on higher education generally and on individual institutions that seek its ratings are crucial to their cost of borrowing. In a statement being issued today, Moody's says that the "partial recovery in equity markets" has helped many colleges and that many institutions have found ways to increase their liquid assets. But many institutions, Moody's says, face "fundamental and cumulative risks of weakened student demand and donor support," as well as greater outside scrutiny. On issues of credit stability, Moody's says that the risks are greater for private institutions than public institutions.