Moody's maintains negative outlook for higher ed

Moody’s Investors Service is maintaining its negative outlook for the U.S. higher education sector, it said in a new outlook update, citing expense pressures and limited revenue growth prospects over the next 12 months to 18 months.
However, the update notes a series of positive trends that “generally bodes well for the higher education sector,” and that “point to possible stabilization of credit conditions over the next year.” Those include expected enrollment growth, increased endowment support, higher employment rates and a rebound in the housing market.

Last week reports issued by Standard & Poor’s Ratings Service noted that public and private, non-profit universities stabilized their finances last year but steep challenges remain — and the year ahead may be rocky.