|[December 11, 2012]
Fitch: Outlook Stable for U.S. Colleges and Universities in 2013
NEW YORK --(Business Wire)--
Student demand and enrollment, balance sheet resources and liquidity,
and risk management practices lead to a stable 2013 outlook for U.S.
Colleges and Universities, according to a new Fitch Ratings report.
'Colleges and universities continue to fine tune recruitment strategies
with a greater emphasis on retention and graduation rates,' said Joanne
Ferrigan, Director at Fitch. 'While the increased focus on graduation
rates may lead to a decline in enrollments as students graduate faster,
overall enrollment is expected to remain relatively stable.'
The state funding environment is starting to stabilize, which should
temper operating pressures if federal reductions to the states is
gradual as expected. Federal budget reduction measures may directly
affect federal research grants receipts.
Both public and private institutions are closely monitoring tuition
costs in recognition of students' ability to pay and in conjunction with
the institutions' competitive position and ability to balance financial
Investment performance has been mixed in 2012, and uncertainty about the
financial markets remains. The majority of investment-grade higher
education institutions have been making financial cushions a priority,
relative to both financial leverage and operating expenses.
Fitch will host a conference call to discuss its 2013 outlook for U.S.
Colleges an Universities on Dec. 12th at 2pm EST.
Dial-in details are:
U.S. Participants: +1-877-467-8597
International Participants: +1-706-643-6296
Conference and Replay ID: 73933884
Replays will be available for 30 days. Replay dial-ins are accessible
using the following numbers:
U.S. Replay: +1-855-859-2056
International Replay: +1-404-537-3406
The full report titled '2013 Outlook: US Colleges and Universities' is
available on the Fitch web site at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: 2013 Outlook: U.S. Colleges
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