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