April 21, 2000

Credit Outlook Healthy for Community Colleges

By ERIK LORDS

The credit outlook for community colleges is largely positive, based on growing enrollments, improving financial trends, and a favorable debt position, a new report says.

But the report, released this month by Moody's Investors Service, also warns that institutions that rely heavily on tax revenues and serve economically stagnant regions might experience some decline in credit quality.

"In addition, colleges that serve growing districts may need to

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