Although U.S. private colleges and universities continue to face multiple challenges, Standard&Poor's Ratings Services' fiscal 2013 demand and financial medians for this sector have remained stable relative to the previous year. Increased endowment market values due to strong market returns were the primary improvement that strengthened university financial resources. At the same time, our net operating income margin medians have compressed in every category. We believe that this margin compression reflects affordability concerns combined with increased competition for students. Although the higher education sector has been stable for the past 10 years, current economic conditions and the slow recovery from the Great Recession will continue to pressure the sector as a whole, and our lower rated universities in
