Stable Credit Outlook for Universities in NYC
Friday, January 18, 2013 - 05:43 PM
The credit ratings agency Moody's recently revised its outlook for the U.S. higher education sector from "stable" to "negative" but universities in New York City have a better outlook than most.
Despite the industry shift, NYU, Columbia, CUNY and Fordham all have individual stable outlooks.
According to Moody's, while many schools are struggling to bring in revenue, universities in New York have a leg-up, especially when it comes to real estate.
"For New York City schools, the real estate value and their ability to realize those benefits, we factor in more than something that's much more rural," said Karen Kedem, a Vice President at Moody's and co-author of the report.
CUNY — the only public university on the list — has such a good rating due to its sheer size and breadth, according to Kedem.
"It has incredible diversity between the geographical locations as well as the programs offered from community colleges to professional schools, so it's got quite a range, that diversity provides more stability," she said.
Cornell University, which recently started its NYC Tech School at Google's offices in Chelsea, also has a stable rating.