KBRA releases research examining how credit ratings assigned to some private colleges and universities by other rating agencies are too low, based on real-world impairment and default data. The report discusses how their overreliance on certain “vanity metrics” like student selectivity has led to ratings that are detached from the historical default and recovery risks they are supposed to capture.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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