U.S. Not-for-Profit Private and Public Higher Education

Source: Moody’s, Rating Methodology, 26 Aug 2011

This rating methodology explains Moody’s approach to assessing credit risk for U.S. public and not-for-profit private colleges and universities. It provides a reference tool that can be used when evaluating credit profiles for U.S. higher education institutions, helping investors, colleges and universities, and other interested market participants understand how key quantitative and qualitative characteristics affect rating outcomes. The report provides a detailed guide to the main analytical factors and ratios that drive ratings in this sector, although it does not include an exhaustive discussion of every ratio or sub-factor that might be relevant when evaluating an individual organization’s unique credit attributes. Related sectors not covered in this report include community colleges, universities outside of the United States, and for-profit education providers.
Highlights of this report include:
» The combination of public and private higher education into a single methodology
» The introduction of a scorecard with a weighted quantitative grid and notching for qualitative factors

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