UChicago Downgraded by Fitch on Deficits, Rising Expenses (1)

The University of Chicago was downgraded one notch by Fitch Ratings, which cited the school’s recent budget deficits and rising expenses for the revision.

The private university was cut from AA+ to AA, the third highest credit quality grade, on Tuesday. “Operating deficits persist,” analysts at Fitch wrote in a report, adding that, “macro expense pressures have mounted, particularly labor and supplies.”

Colleges across the country are contending a tough fiscal environment, as inflation pushes up expenses and a pullback in federal funds leaves universities more vulnerable. Earlier this month, Columbia University’s credit outlook was revised to negative by ...