November 3, 2008
Debt-Financing Option May Increase Bankruptcy Risk for Some Colleges
Washington
A common type of variable-rate financing has suddenly become a bankruptcy threat to an unknown number of colleges, most of them not well off, the top higher-education analysts at the nation’s two major credit-rating agencies said on Friday.
The threat affects mostly less-wealthy colleges that have used variable-rate bonds either to get a better price when borrowing or because they lacked bond ratings and had little other choice, said the analysts, from Moody’s Investors
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