Fitch, Moody’s and S&P issued bleak assessments for nonprofit colleges and universities heading into 2026, citing mounting operating pressures, demographic declines and enrollment uncertainty. The three major credit-rating agencies described the sector’s outlook as “deteriorating” or increasingly difficult, flagging fiscal stress across small and mid-sized institutions. Analysts pointed to shrinking cohorts, volatility in international and adult enrollment, and policy shifts from the federal government as the core drivers. The agencies’ reports signal heightened scrutiny from lenders and trustees and make borrowing costs and balance-sheet resilience top-tier priorities for campus finance leaders.