The three major credit‑ratings firms—Fitch, Moody’s and S&P Global—have turned cautious on U.S. higher education, publishing forecasts that describe the sector’s 2026 financial outlook as deteriorating. Analysts cite enrollment headwinds, demographic declines and policy uncertainty as drivers that will pressure operating margins and increase the risk of downgrades. Credit analysts expect more institutions to trim budgets, freeze hiring, and accelerate consolidation to protect bond ratings. Ratings action will affect capital plans: campuses planning facility projects or debt refinancing may face higher borrowing costs or stricter covenants. Financial officers and trustees should expect heightened scrutiny from investors and rating analysts on enrollment trends, reserve coverage and contingency plans. The agencies flagged sector‑wide uncertainties rather than isolated failures, meaning even fiscally sound institutions will likely see tighter market terms if macro pressures persist.