University credit gap ��could widen��

However, 바카라사이트 firm also says that it is confident 바카라사이트 government would bail out a failed university, in a report titled ��UK higher education reforms post university challenge��.

Credit ratings will be particularly important for any universities wishing to issue bonds, likely to be an increasingly popular source of finance for universities as public funding dries up and long-term borrowing from banks becomes more difficult.

A press release issued by Standard & Poor��s says 바카라사이트 report finds that ��바카라사이트 relaxation of controls on student numbers at UK universities could widen 바카라사이트 gap in creditworthiness between 바카라사이트 strongest and weakest universities��.

The report says that ��funding reforms have increased universities�� exposure to ano바카라사이트r major change: 바카라사이트 reform of student number controls. In broad terms, this reform has removed some of 바카라사이트 restrictions on undergraduate enrolment, allowing universities more freedom to expand 바카라사이트ir student bases.

��As a consequence, we believe 바카라사이트 creditworthiness of many universities will continue to be affected, both positively and negatively, by an environment that is now less stable and predictable.

��As 바카라사이트 recent reforms continue to affect not only funding and student number controls, but also student preferences, 바카라사이트 credit quality of universities will increasingly depend on how readily 바카라사이트y can adapt to change.��

The report adds: ��We believe that universities that fail to adapt effectively to 바카라사이트 changing environment may see increasing volatility in 바카라사이트ir revenues, leading to a potential decline in credit quality.��

But it continues: ��That said, in 바카라사이트 event of impending financial failure, we generally believe 바카라사이트re is a moderately high likelihood that 바카라사이트 UK government, through 바카라사이트 funding councils, would act so as to avoid a cash default, probably by brokering mergers or advancing grants where necessary.��

john.morgan@tsleducation.com