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U.S. Higher Education Rating Actions, Fourth-Quarter 2022

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:

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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

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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