Moody’s Lists Top 10 Reasons for Changing Colleges’ Credit Ratings

Moody’s Investors Service published a list today of the top 10 factors that affect its credit-rating changes for institutions of higher education. Factors that could contribute to a downgrade are big increases in debt, thin operating margins, and a weak market position.  In contrast, improved fund raising and reduction of debt-structure risks may contribute to an upgrade. For the past two years, as credit conditions have tightened, the number of downgrades has climbed above the number of upgrades, but most institutions still maintain a stable outlook, Moody’s says.