Higher education institutions will have to review growth plans and sector’s credit profile could take a hit, ratings agency says

Ratings agency Moody’s says the federal government’s $2.2bn cut to higher education will force universities to review growth plans and could have a “negative impact” on the sector’s credit profile.

In a report to investors, Moody’s said the government’s decision to effectively end the demand-driven university funding system by freezing the commonwealth grant scheme in its mid-year budget update would lead to increased “execution risk” for university budgets.

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