Public Finance: Private, Not-For-Profit U.S. Higher Education Rating Methodology

Executive Summary

This document describes KBRA’s rating methodology as it pertains to bonds issued by private, not-for-profit U.S. colleges and universities which applies to traditional four-year colleges and universities as well as specialized and single-focus undergraduate and graduate schools, such as standalone law schools. It identifies the key determinants used in the assignment of a credit rating and is intended to provide guidance and insight to all market participants as to how these determinants may be applied when making a rating assignment.

KBRA has identified four key Rating Determinants that are used in assigning credit ratings for private, not-for-profit U.S. colleges and universities. These are:

This methodology covers a wide array of institutions with diverse characteristics and missions. According to the National Association of Independent Colleges…