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<p>I don’t think I’ve ever heard anyone make the claim that all small colleges are in trouble. What’s usually said is that small, tuition-dependent private colleges, especially the less selective among them, are in trouble. I think you’ll find plenty of corroboration for that statement in these lists. Most of the small colleges at the top of the charts have healthy endowments, and many also generate substantial annual giving from generally affluent alumni. If you go to the bottom of the list and look at the D and C- rated schools, I think you’ll find almost all of them are small, tuition-dependent (low- or no-endowment), private, non-selective schools–the kind that many people are saying are in trouble.</p>
<p>Odd that they look only at private schools, however. The bond rating agencies need to look at publics as well. I’m quite certain Michigan and UVA have maintained AAA bond ratings even through the recent deep recession and should probably be in A+ territory on this list.</p>
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<p>Endowment size is only one factor in an institution’s financial health. Harvard in particular has also borrowed heavily and has heavy debt repayment obligations that offset some of the wealth in its endowment. Many people also think Harvard’s endowment may be overvalued, with lots of underperforming and illiquid assets that are difficult to value because there is quite literally no market for them right now. Obviously it’s in the institution’s interest to place a moderately high value on such assets so it doesn’t look like they bungled. In any event, I don’t think Harvard is on the brink of ruin, but I’m not surprised it’s not ranked #1 in financial strength.</p>