S&P Global Ratings took 33 rating actions and maintained 60 ratings in the U.S. not-for-profit higher education sector during the fourth quarter of 2022. The 33 rating actions are broken out as follows:
The stabilizing trend among U.S. higher education issuers has continued through the year. Of 19 rating outlooks that S&P Global Ratings revised during the fourth quarter, nine were revised to stable from negative. The reasons for revising the outlooks to stable varied significantly and covered institutions rated from 'AA' to 'BB' with fairly equal distribution. However, a common trend was enrollment growth and improved operating performance.
The six upgrades and five outlook revisions to positive were based on steady enrollment growth supporting improved financial performance. The seven downgrades and five outlook revisions to negative were caused by operating deficits, sustained enrollment declines, and weak available resources for the rating. Although federal funding provided financial relief through fiscal 2022 for many schools facing tighter budgets, most institutions are entering fiscal 2023 with limited to no stimulus aid remaining while combatting rising costs and inflation.
The following tables summarize S&P Global Ratings' quarterly rating actions for U.S. not-for-profit higher education issuers. All rating actions, outlooks, and maintained ratings are based on our "Methodology: Not-For-Profit Public And Private Colleges And Universities," published Jan. 6, 2016.
Table 1
Fourth-Quarter 2022 U.S. Higher Education Rating Actions | ||||||
---|---|---|---|---|---|---|
Institution | State | Rating to | Rating from | Outlook to | Outlook from | Description |
Barnard College | NY | A | Stable | New rating | ||
Cabrini University | PA | BBB- | BBB | Stable | Negative | Continued enrollment declines and operating decifits, with available resources aligned with 'BBB-' rated peers |
Fayetteville State University | NC | A- | BBB+ | Stable | Stable | Improved balance sheet ratios due to positive operating performance, along with stable demand profile |
Lasell University | MA | BB | BB+ | Negative | Negative | Enrollment declines and high endowment draws due to weak operating budget and debt pressures |
Lesley University | MA | BBB+ | A- | Stable | Negative | Continued enrollment declines and operating pressures due to demand pressure |
The Master's University | CA | BBB- | BB+ | Stable | Positive | Enrollment growth spurring robust demand and positive operating margins |
Regent University | VA | BBB | BBB- | Stable | Positive | Enrollment growth coupled with operating surpluses and available resource growth |
Seattle Pacific University | WA | BBB+ | A- | Negative | Negative | Ongoing governance risks contributing to demand pressure and full-accrual deficits |
University of Illinois | IL | AA- | A+ | Stable | Positive | Strong demand profile spurring consistent full-accrual surpluses and available resource growth |
University of Indianapolis | IN | BBB | BBB+ | Stable | Negative | Enrollment declines and weak available resource ratios expected to translate into weaker operations over time |
Vanderbilt University | TN | AAA | AA+ | Stable | Positive | Exceptional operating performance history and balance sheet strength with substantial endowment increase, alongside improved demand metrics |
Western New England University | MA | BBB- | BBB | Stable | Negative | Weak financial resource ratios further impaired by demand and operating pressures, coupled with enrollment declines |
Westminster College | UT | BBB- | BBB | Stable | Negative | Enrollment declines alongside large operating deficits in recent years |
Winston-Salem State University | NC | A- | BBB+ | Stable | Positive | Improved financial resources due to stable operating performance and enrollment metrics |
Table 2
Fourth-Quarter 2022 U.S. Higher Education Outlook Revisions | |||||
---|---|---|---|---|---|
Institution | State | Rating | Outlook to | Outlook from | Description |
Agnes Scott College | GA | A- | Stable | Negative | Continued enrollment growth and demand stability spurring improved financial resources |
Albany College of Pharmacy and Health Sciences | NY | BBB+ | Negative | Stable | Demand challenges and operating decificts expected to translate into weakened available resources |
Columbia College Chicago | IL | BBB+ | Negative | Stable | Weakened operating performance expected to inhibit ability to improve balance sheet over time |
Georgetown University | DC | A- | Stable | Negative | Solid student demand with improved financial performance in fiscal 2022 |
Hawaii Pacific University | HI | BB | Stable | Negative | Enrollment growth and improved operations enabling credit cushion relative to debt covenants |
Kansas City Art Institute | MO | A- | Stable | Negative | Enrollment growth alongside improved financial resources |
Kansas State University | KS | A+ | Stable | Negative | Growth in available resources and strengthening of operating margins |
Manchester University | IN | BBB+ | Negative | Stable | Strained operating margins due to enrollment declines coupled with plans for high endowment spend |
Mayville State University | ND | BBB+ | Stable | Negative | Improved available resource levels and anticipated increase in state support despite demand variability |
Minot State University | ND | A | Stable | Negative | Financial resource ratio growth despite enrollment pressures and low debt levels |
Montana State University | MT | A+ | Positive | Stable | Balance sheet growth spurred by operating surpluses and strong demand |
New Jersey Institute of Technology | NJ | A | Stable | Negative | Favorable enrollment trend resulting in expectations of improved financial operating performance |
Oberlin College | OH | AA- | Negative | Stable | Potential increase in debt, which could lead to weaker balance sheet ratios |
Saint Joseph's University | PA | A- | Positive | Stable | Ability to increase enrollment and potentially financial resources after merger with USciences |
Stevens Institute of Technology | NJ | BBB+ | Positive | Stable | Increased enrollment and expectations for continued growth coupled with operating surpluses |
Sweet Briar College | VA | BB | Positive | Stable | Recent enrollment growth while enterprise profile is still vulnerable due to low student body size, with strong financial resources and low debt |
University of North Carolina at Charlotte | NC | A+ | Positive | Stable | Improved financial resource metrics spurred by growth in investments, state appropriations, and federal relief funds |
Wake Forest University | NC | AA | Stable | Negative | Improved financial resources spurred by solid operating margins, fundraising, and no additional debt plans |
Washington College | MD | BBB | Negative | Stable | Enrollment challenges, which could lead to further operating pressure |
Table 3
Fourth-Quarter 2022 U.S. Higher Education Maintained Ratings | |||
---|---|---|---|
Institution | State | Rating | Outlook |
Alvernia University | PA | BB+ | Stable |
Amherst College | MA | AA+ | Stable |
Arcadia University | PA | BBB | Negative |
Augustana University | SD | BBB- | Stable |
Governors State University | IL | BBB | Stable |
Boston University | MA | AA- | Stable |
Bryn Mawr College | PA | AA+ | Stable |
Butler University | IN | A- | Stable |
Calvin University | MI | A- | Stable |
Central Michigan University | MI | A+ | Stable |
Centre College of Kentucky | KY | A | Stable |
Colorado School of Mines | CO | A+ | Stable |
Dartmouth College | NH | AA+ | Positive |
Davidson College | NC | AA+ | Stable |
Florida Institute of Technology | FL | BBB- | Stable |
Grinnell College | IA | AAA | Stable |
Hiram College | OH | BB | Stable |
Johns Hopkins University | MD | AA | Stable |
Johnson & Wales University | RI | A- | Positive |
Liberty University | VA | AA | Stable |
Loyola University | LA | BBB | Stable |
Loyola University Maryland | MD | A | Stable |
Lycoming College | PA | A- | Negative |
Marshall B. Ketchum University | CA | A- | Stable |
Merrimack College | MA | BBB- | Stable |
Messiah University | PA | A- | Stable |
Milwaukee School of Engineering | WI | A- | Stable |
Minnesota State Colleges & Universities | MN | AA- | Stable |
Missouri State University | MO | A+ | Stable |
Molloy University | NY | BBB | Stable |
Mount Aloysius College | PA | BBB+ | Stable |
New Mexico State University | NM | A+ | Stable |
North Dakota State University | ND | AA- | Stable |
Old Dominion University | VA | A+ | Stable |
Pacific University | OR | BBB | Stable |
Quinnipiac University | CT | A- | Stable |
Rowan University | NJ | A | Stable |
St. Bonaventure University | NY | BBB+ | Stable |
St. Lawrence University | NY | A | Stable |
State University of Iowa | IA | AA | Stable |
Stevenson University | MD | BBB- | Stable |
Taylor University | IN | A- | Stable |
Teachers College - Columbia University | NY | A+ | Stable |
Trinity College | CT | A+ | Stable |
University of Arizona | AZ | AA- | Stable |
University of Connecticut | CT | A+ | Stable |
University of Health Sciences & Pharmacy in St. Louis | MO | BBB- | Stable |
University of Idaho | ID | A | Stable |
University of Louisana at Lafayette | LA | A- | Stable |
University of Louisville | KY | A+ | Stable |
University Of Northwestern Ohio | OH | BBB- | Stable |
University of Pittsburgh | PA | AA+ | Stable |
University of South Alabama | AL | A+ | Stable |
University of Utah | UT | AA+ | Stable |
Vassar College | NY | A+ | Stable |
Washington & Jefferson College | PA | BBB+ | Stable |
Wesleyan University | CT | AA | Stable |
Westminster College | PA | BBB | Stable |
Willamette University | OR | BBB | Stable |
Worcester State University | MA | A | Stable |
Related Research
- Outlook For U.S. States: Rainy Day Funds Will Support Credit In A Shallow Recession, Jan. 5, 2023
- Advancing Or Adapting: The State Of Play In U.S. Higher Education, Nov. 29, 2022
- Economic Outlook U.S. Q1 2023: Tipping Toward Recession, Nov. 28, 2022
- Cyber Risk In A New Era: U.S. Colleges And Universities Go Back To School On Cyber Security Preparedness, Sept. 29, 2022
- U.S. Not-For-Profit Private College And University Fiscal 2021 Median Ratios: Financial Margins Improve, Balance Sheets Strengthen Despite Enrollment Declines, July 12, 2022
- U.S. Not-For-Profit Public College And University Fiscal 2021 Median Ratios: Federal and State Funds Relieve Pandemic Pressure, Elevate Margins, July 12, 2022
- Federal Funds Kept U.S. Colleges And Universities Afloat; Some May Sink When They're Gone, June 2, 2022
This report does not constitute a rating action.
Primary Credit Analysts: | Jessica L Wood, Chicago + 1 (312) 233 7004; jessica.wood@spglobal.com |
Laura A Kuffler-Macdonald, New York + 1 (212) 438 2519; laura.kuffler.macdonald@spglobal.com | |
Secondary Contact: | Natalie Nash, Salt Lake City +1 4153715013; natalie.n@spglobal.com |
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