After two challenging years for higher education, Moody’s Investors Service forecasts a stable outlook for the sector in 2022, the credit ratings agency announced Tuesday.
Operating revenue is predicted to rise between 4 and 6 percent as students return to campus and auxiliary revenue streams—including room and board—rebound. At the same time, labor shortages and inflation could increase institutional spending and result in tight margins for many institutions.
Moody’s outlook could change if inflation outpaces revenue growth and expense pressures remain, the agency wrote.
Fitch Ratings also released its outlook for higher education Tuesday, forecasting a neutral year for the sector.