Fitch Ratings raised its outlook for U.S. colleges to stable Wednesday as institutions plan for mostly in-person instruction in the new academic year, revising what had been a negative view of the sector. The credit ratings agency cited improving application numbers, a solid state budget picture and the possibility that auxiliary and student fee revenue could improve as campuses reopen. But Fitch expects highly selective and flagship research universities to be better positioned to handle future challenges than smaller institutions, which may have fewer financial resources and face weaker demand in some markets.
