SCUP Community & College Mojo Week 8— September 27–October 3, 2013
Employing College and University Credit Ratings as Indicators of Institutional Plan…
The goal of this article is to highlight the importance of college and university credit ratings and the potential implications for higher education budgeting and planning as institutions seek out larger and larger amounts of debt.
I place particular emphasis on the use of ratings as an indicator of planning effectiveness and a tool for rethinking some strategic plans as the market for higher education continues to change. This analysis focuses on the long-term general obligation credit ratings established and reported by Standard & Poor’s (2007, 2010) and Moody’s (2007, 2011) for nonprofit colleges and universities in the United States.
Although there are currently three credit rating agencies, Moody’s, Standard & Poor’s, and Fitch, the emphasis here is on the first two given their long history of rating the nonprofit higher education sector.
What do you think of this potential?