Seton Hall University, the largest Catholic university in New Jersey, said July 22 that S&P Global Ratings has affirmed the long-term credit rating of ‘BBB+’ on revenue bonds issued through the New Jersey Educational Facilities Authority. The outlook remains stable, reflecting the university’s consistent enrollment trends, adequate financial resources, and manageable debt profile.
In its report, S&P spotlighted Seton Hall’s strong enterprise risk profile, citing stabilizing full-time-equivalent enrollment, a rebound in graduate student numbers, and improved selectivity. Seton Hall’s financial risk profile was assessed as adequate, supported by breakeven operating results and sufficient liquidity, despite a high dependence on student-generated revenue.
“We are pleased that S&P Global has recognized the strength and resilience of Seton Hall’s academic and financial foundation,” said Monsignor Joseph Reilly, president of Seton Hall University. “This affirmation reflects our ongoing commitment to strategic growth, student success, and long-term sustainability.”
The report noted that Seton Hall’s maximum annual debt service remains manageable at 3.4% of adjusted expenses, with no new debt planned in the near term. The school’s cash and investments totaled $433.9 million as of June 30, 2024, representing 84.6% of operating expenses and 156.1% of outstanding debt.
S&P also mentioned the university’s recent successes in philanthropy with multiple fiscal years of meeting or exceeding fundraising goals, and the leadership transition under Monsignor Reilly, who began his tenure in July 2024.
The stable outlook reflects S&P’s expectation that Seton Hall will maintain steady enrollment and financial performance, with no significant changes to its debt profile.
In December, S&P Global Ratings offered a “bifurcated/mixed” outlook for higher education overall in 2025, believing well-positioned institutions will be fine while colleges with enrollment and financial challenges will struggle.
For “highly regional, less-selective institutions that lack financial flexibility,” S&P Global projects a negative outlook, while those with “broad geographic reach, steady demand, and sufficient liquidity and financial resources to navigate operating pressures” should be stable.
S&P said more cash-strapped colleges will run into issues paying down debt in 2025 and more colleges were going to close.
