News release: “The 2013 outlook for the entire US higher education sector is negative, including the market-leading, research-driven colleges and universities, says Moody’s Investors Service in its annual industry outlook. Previously Moody’s had a stable outlook for these leading institutions and a negative outlook for the rest of the sector since 2009. Moody’s perceives mounting fiscal pressure on all key university revenue sources. “The US higher education sector has hit a critical juncture in the evolution of its business model,” says Eva Bogaty, the Moody’s Assistant Vice President — Analyst who is the lead author on the report US Higher Education Outlook Negative in 2013. “Even market-leading universities with diversified revenue streams are facing diminished prospects for revenue growth.” The rating agency says that most universities will have to lower their cost structures to achieve long-term financial sustainability and fund future initiatives. Universities have been restraining costs in response to the weak economic conditions since the 2008-2009 financial crisis, but they have only recently begun examining the cost structure of their traditional business model.”