Moody’s Ratings has upgraded New Jersey City University (NJCU)’s financial outlook from stable to positive while affirming its Ba2 issuer and revenue bond ratings. This follows Moody’s Ratings upgrading NJCU’s outlook from negative to stable in February 2024.
The upgrade marks a historic milestone for NJCU — the first time Moody’s has ever assigned a positive outlook to the university and the first consecutive annual outlook upgrades since at least 2003 — as far back as rating organizational records are available. The consecutive upgrades reflect growing confidence in the university’s financial management and future sustainability after years of navigating significant economic challenges.
NJCU’s revised positive outlook stands in contrast to Moody’s recent negative assessment on the higher education sector overall, due to wide-ranging federal policy changes that pose significant challenges to colleges across the entire sector.
“Today’s decision by Moody’s to revise New Jersey City University’s ratings outlook to positive is not simply a financial milestone — it is a powerful affirmation of what is possible when a university chooses resilience over retreat, and purpose over paralysis,” said NJCU Interim President Andrés Acebo. “In a national climate where Moody’s has recently issued a negative outlook for the American higher education sector, NJCU has defied the trend. We are not immune to the challenges confronting higher ed — but we are confronting them head-on. This moment affirms the truth we have always known: that institutions built on mission and grit can rise, even when the odds suggest otherwise.”
Moody’s report specifically notes the outlook revision “reflects continued financial improvement and significantly reduced operating losses. NJCU also has strategically monetized real estate assets, strengthening reserves and enabling critical capital investments. While challenges remain, swift operational realignment and continued state support strengthen its position as a viable partner in recently announced merger plans with Kean University. Improvements in financial strategy, risk management and management credibility are governance considerations and key drivers of this rating action.”
Moody’s also cited continued operational progress, noting: “NJCU’s leadership continues to execute strategic operational improvements, demonstrated by a 9% EBIDA margin, 1.7x debt service coverage and 61 monthly days cash on hand (DCOH) in fiscal 2024.”
Acebo noted, “We are deeply appreciative of the steadfast support from our state partners, including our state-appointed fiscal monitor, whose commitment to NJCU’s mission as a vital public institution has been instrumental and contribute meaningfully to our progress.”
The full announcement from Moody’s, including its ratings rationale, outlook and factors that lead to an upgrade or downgrade in ratings, is available on Moody’s website.
The consecutive upgrades from Moody’s come after Fitch Ratings also previously revised the Rating Outlook on the Issuer Default Rating (IDR) and bond rating for NJCU to stable from negative in its most recent rating announcement in November 2024.
