Bangkok--22 Feb--Standard & Poor's
Standard & Poor's Ratings Services said in a report today that it expects most private primary and secondary schools to emerge from the recession successfully, although many will have experienced some deterioration in credit quality.
"We believe that the biggest risk currently facing the sector is the possibility of structural budget deficits and the challenge will be to reduce expenses to make up for lower revenues," said Standard & Poor's credit analyst Blake Cullimore. "While we believe most rated independent schools will successfully work through this period of increasing risk without major rating repercussions, some will have a more difficult task than others," said Mr. Cullimore.
Financial operating performance continues to be a major credit concern for independent schools and investment losses, liquidity concerns, high endowment spending rates, lower fundraising results, and rising financial aid budgets are likely to continue to constrain operating performance, according to the report, "U.S. Private Primary And Secondary Schools Are Facing Growing Challenges." Click on link to access report.
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
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Analyst Contacts:
Blake Cullimore, Boston (1) 617-530-8312
Mary Peloquin-Dodd, New York (1) 212-438-2079
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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