University debt ratings to face volatile year

Many American universities could face a volatile year in terms of financing in 2013, with a major credit ratings agency saying it expects to issue more ratings changes in the not-for-profit higher education sector this year, reports Reuters.

Standard & Poor's Ratings Services, in a report last Monday, described a sector that was facing both risks and opportunities as institutions strive to reassess programmes, delivery systems, cost structures and revenue sources.

Changes to the debt ratings will be evenly split between positive and negative, with the negative concentrated in lower-rated institutions and the positive concentrated in higher-rated universities, which have established demand, more revenue diversity, fundraising experience and strong balance sheets.
Full report on the Reuters site