Perspectives Blog

High-cost colleges beware

Beth Ware, Senior Municipal Bond Analyst | August 20, 2013

High-cost colleges beware: newly cost-sensitive students may pressure your business model. Municipal bond investors should be aware that certain categories of universities are likely at greater risk of credit rating downgrades. We remain concerned with universities that do not have a strong balance sheet, revenue flexibility and/or reputation to compete long-term in an industry where revenue growth is projected to be stagnant. The cost of high…