News Column

Fitch: Reliance on Tuition and Fees Continues at U.S. Public Colleges and Universities

July 16, 2014



NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: 2013 Median Ratios for U.S. Public Colleges and Universities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=752077

Despite easing state appropriation cuts, tuition and fee increases continue to fill the revenue gap for public universities, according to a Fitch Ratings report.

'In contrast to appropriation trends, student fee revenues continued to increase relative to operating revenues, but at lower rates than in recent years,' said Joanne Ferrigan, Senior Director.

'Fitch anticipates moderate tuition increases going forward even as state operating appropriations stabilize.'

Operating results, for the portfolio medians, remained slim but positive across the public university sector in fiscal 2013 due to pressures limiting tuition rate increases, expense pressures following years of cost-containment efforts, and a still-constrained appropriation environment.

The median available funds ratio relative to debt weakened somewhat for 'AAA' public universities. It was stable for the 'AA' rated institutions, which are the largest and most representative group of Fitch-rated public universities. Fitch attributes both trends to strategic debt issuance as the economy, investment markets and fundraising environments improve.

Median available funds ratios relative to operating expenses strengthened slightly, indicating continued cost containment efforts in a still-pressured appropriation environment, as well as some endowment and balance sheet support from fundraising and stronger investment markets.

For more information, a special report titled 'Fiscal 2013 Median Ratios for US Public Colleges and Universities' is available on the Fitch Ratings web site at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

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 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.



Fitch Ratings

Joanne Ferrigan

Senior Director

+1-212-908-0723

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Susan Carlson

Director

+1-1-312-368-2092

or

Alexander Vaisman

Associate Director

1-212-908-9721

or

Media Relations

Elizabeth Fogerty, +1 212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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