Fitch was active sharing information last month as most U.S. colleges started their new fiscal years. The ratings agency circulated a forward-looking commentary on inflation and tuition and held a webinar covering current conditions. It also shared median financial data from 2021 for over 100 colleges whose debt quality it rates.
The median financial data was similar to a report released at the end of June by one of Fitch’s competitors, Moody’s Investors Service. Moody’s analyzed audited financial data at public institutions in its portfolio in 2021 — audited data is more accurate than initial figures — and found operating revenue grew by a median 3.1% amid increased state funding, federal pandemic relief and institutional expense cuts. But Moody’s predicted performance will soon slip back to historic norms or fall below them.