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Fitch Ratings Predicts More Closures, Mergers

In a report released Wednesday, Fitch Ratings predicted that more colleges will close, merge or significantly restructure operations due to enrollment declines and other market pressures. Colleges that are already struggling will likely continue to do so, the report forecast. Given the enrollment challenges at many institutions—which are likely to become more pronounced in the future due to a looming demographic cliff—the ratings agency noted that “revenue growth prospects are relatively limited for now” at small, nonselective private colleges and some public regional universities. Colleges that are tuition dependent are most at risk, the report suggested.
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