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TMCNet:  Fitch: US Non-Profit Higher Ed 2013 Enrollment Largely Positive

[December 17, 2013]

Fitch: US Non-Profit Higher Ed 2013 Enrollment Largely Positive

NEW YORK --(Business Wire)--

A modest increase in fall 2013 unduplicated student headcount will have a positive revenue impact on U.S. four-year public and non-profit private colleges and universities despite negative demographic pressures. The third annual drop in headcount at two-year public institutions should be manageable through expense controls, Fitch Ratings says.

Enrollment rose by 0.3% in four-year public institutions and 1.3% in non-profit four-year private institutions, according to the National Student Clearinghouse Research Center.

We believe the modest increases in enrollment are attributable to a variety of factors, including growth in international enrollment and increased acceptance of the lifelong learning concept. In general, senior leadership teams construct budgets based on headcount estimates that consider demographic conditions and historical data, which helps to manage the financial impact of changing enrollment patterns.

Two-year public institutions saw a third consecutive dip in enrollment, which was expected as demand for these institutions is generally counter-cyclical to the overall economy. We believe that most of the two-year public institutions will be able to adjust operating expenses to match the reduction in revenue base. These institutions typically wield significant labor cost flexibility.

Additional information is available on www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.

Applicable Criteria and Related Research:

2014 Outlook: U.S. Colleges and Universities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725317

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


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