US universities are likely to face continued financial pressures over the next 12-18 months, says a report by Moody's Investors Service in New York. Negative Outlook for US Higher Education Continues Even as Green Shoots of Stability Emerge predicts that competition for tuition revenue, federal grants and state funding will affect regional public universities most; prominent private universities with large endowments will perform well. The negative outlook means that Moody's is more likely to give US universities poor credit ratings; as a result, they will incur higher borrowing costs and may have to cut back on hiring.
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