In The Chronicle, Scott Carlson shares some of the forthcoming report about higher education institutions from Moody's.

Institutions that already have large, well-established research programs and strong philanthropic support are pulling through the economic downturn relatively well, she said. The strongest institutions are in top demand and have fingers in a number of business lines.

Meanwhile, the weakest institutions—which draw students from a regional base and lack diversity in business lines—could still be endangered. Those institutions are generally small or mid-sized and do not have a robust fund-raising capacity. "We could see some of those merging or being absorbed by larger institutions, or even going out of business," Ms. Tuby said.

The report points to three "critical credit factors" that drive the 2011 outlook for colleges:

• "Weakened prospects for net tuition growth" because of a market preference for low-cost or high-reputation competitors.

• "Differing degrees of pressure on nontuition revenues," such as philanthropy or research money.

• A "need for stronger management of operating costs, balance-sheet risks, and capital plans."