Moody’s downgraded Brown University’s credit outlook to negative, pointing to “already thin operating performance,” elevated debt obligations, and the likelihood that the university’s future borrowing capacity could be constrained if operating margins do not improve. Moody’s reaffirmed Brown’s high credit rating but warned that if Brown’s ability to improve margins by fiscal 2028 does not materialize, the rating could face renewed pressure—despite strong student demand and fundraising in the near term. Separately, Fitch Ratings reported that private colleges maintained balance sheets in 2025 but warned that rising labor and inflation costs, demographic shifts, and an “adversarial federal policy environment” are straining institutions—especially those that remain heavily tuition dependent. Fitch highlighted widening financial flexibility gaps within the sector, record-high tuition discounting, and reduced capital spending on facilities and deferred maintenance, all of which could increase debt needs for less flexible institutions.