...Revenue Diversity Parallels Ratings: Fiscal 2014 financial medians for private colleges and universities continued to demonstrate a strong relationship between revenue diversity and rating level. Institutions rated in the `AAA' and `AA' rating categories typically have the most diverse revenue streams, with a mix of net student revenue, research, healthcare enterprises, gift income and endowment draws. In contrast, those rated in the `A' rating category and below are highly dependent on student-generated revenues. Operating Performance Generally Improved: The median operating margin improved and was positive for all investment-grade rating categories in fiscal 2014. The exception was the speculative-grade rated category, which declined and had a median operating margin of zero. For private universities as a whole, the median increased slightly to 3.3%. However, there was some variation among the rating categories. Discounting Pressures Operations: The medians for the `AAA' and `BBB' rating...
