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Weaker universities will "struggle" after 2015, says Moody’s



Daniel Thomas

Education Investor

30 April 2014


PA’s Mike Boxall, higher education expert, is quoted in Education Investor. Mike comments on a Moody’s report which says that the removal of the cap on domestic university student places in 2015 will ramp up competition between institutions for students.

Mike explains that while the removal of student number controls (SNC) in 2015 would certainly impact the sector, generalisations were unhelpful.

Mike says: “It’s very complex to predict the outcomes [of lifting SNC] as the impacts will be different for every institution. Even within broad categories of university types we are already seeing big variations in recruitment experiences. 

"Given that credit ratings affect the cost of capital for all institutions, you’d hope that Moody’s and other agencies might apply more sophisticated analyses than these rather simplistic generalisations.”

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