Updated
Updated · Bloomberg · Jul 2Moody’s Cuts Brown University Outlook to Negative on Expense Pressures, Threatening Aa1 Rating
2 articles · Updated · Bloomberg · Jul 2Summary
- Brown University’s credit outlook was lowered to negative by Moody’s on Thursday, signaling rising risk around the Ivy League school’s finances.
- Expense pressures drove the move, and Moody’s said Brown could face a downgrade if it fails to improve its financial results.
- Brown still holds an Aa1 rating — Moody’s second-highest grade — but the negative outlook puts that standing under closer scrutiny.
Insights
As dozens of colleges close, what radical changes must universities make to survive the coming decade? Is the American university's centuries-old business model fundamentally broken?