S&P Global Ratings took 23 rating actions and maintained 71 ratings in the U.S. not-for-profit higher education sector during the first quarter of 2025. The 23 rating actions include three new ratings, and are broken out as follows:
The three upgrades reflect favorable operating performance and enrollment trends, improved balance-sheet metrics, and healthy liquidity. The one positive outlook revision was driven by growing enrollment, improved financial resource ratios, and strong operations.
The 10 downgrades and six negative outlook revisions were, inversely, spurred by enrollment declines, weaker operating performance and financial resources, elevated endowment draws, and/or financial covenant violations.
As discussed in our 2025 sector outlook and fiscal 2024 medians reports, credit quality continues to diverge, consistent with our bifurcated outlook. Higher-rated institutions with sufficient liquidity and fundraising ability, steady demand, and excellent reputations have maintained or strengthened their positions year to date; however, lower-rated institutions, such as those that are less selective or regional, face heightened difficulties, including pressure on operating margins, increasing expenses, and intensifying competition. Many of these institutions were already experiencing enrollment challenges prior to the pandemic, and ongoing significant declines have led to widening budget shortfalls. Weaker schools have seen growing liquidity strain and bond covenant concerns, particularly where rising costs have not been offset by corresponding revenue gains.
Adding to enrollment uncertainty, delays and errors in processing the Free Application for Federal Student Aid (FAFSA) for the 2024-2025 academic year left colleges and universities with less time to finalize financial aid package offers. As a result, many institutions have seen impacts on enrollment decisions, leading to declines in matriculation rates and pressure on operating budgets. This uncertainty is further compounded by shifting federal policies and priorities and the potential for research and grant funding reductions, both of which have introduced additional challenges for planning and financial stability.
The following tables summarize S&P Global Ratings' quarterly rating actions for U.S. not-for-profit higher-education issuers. The rating actions, outlooks, and maintained ratings are based on our "Global Not-For-Profit Education Providers" criteria, published April 24, 2023.
Table 1
First-quarter 2025 U.S. higher education rating actions | ||||||
---|---|---|---|---|---|---|
Institution | State | Rating to | Rating from | Outlook to | Outlook from | Description |
Benedictine University | IL | BB | BBB- | Stable | Negative | Weak operations, extraordinary endowment draws in fiscals 2024 and 2025, and deteriorated financial resources and liquidity |
Concordia University Irvine | CA | BBB- | BBB+ | Stable | Stable | Significant debt increase, fully drawn LOC, and DSC below covenant for fiscals 2023-2025 |
Hampton University | VA | A- | A | Stable | Stable | Materially weakened financial resources and increasing leverage |
Harrisburg University of Science and Technology | PA | B- | BB- | Negative | Negative | Material weakening of financial resources, weak financial performance and liquidity, DSC violation |
John Carroll University | OH | BBB | Stable | New rating | ||
Lindenwood Education System | MO | BBB- | Stable | New rating | ||
Loyola University Maryland | MD | A- | A | Stable | Negative | Weaker balance-sheet ratios and deficit operations on a full-accrual basis with increased discounting |
Meredith College | NC | BBB | BBB+ | Negative | Negative | Continued enrollment declines pressuring operations, DSC covenant violation in fiscal 2024, and pressured liquidity |
Ohio State University | OH | AA+ | AA | Stable | Stable | Firm enrollment trend, flagship status, recurring surplus operations, healthy liquidity and fundraising, low debt burden |
Queens University of Charlotte | NC | BBB- | BBB | Stable | Stable | Enrollment and demand challenges, creating significant operating pressure expected through fiscal 2025 |
Regis College | MA | BB | Stable | New rating | ||
Roseman University of Health Sciences | NV | BB+ | BB | Stable | Stable | Solid operations, preliminary accreditation of College of Medicine, which could lead to demand profile improvement |
Southwest Baptist University | MO | BB+ | BBB- | Negative | Negative | Weakened and declining financial operations and liquidity, triggering a DSC violation in fiscal 2024 |
Springfield College | MA | BB+ | BBB | Negative | Negative | Enrollment declines pressuring operations, DSC below covenant levels hindering financial resource growth |
University of Dubuque | IA | BBB- | BBB | Stable | Negative | Declining enrollment and applications, weak selectivity, limited demand profile flexibility, significant additional debt burden |
University of Tulsa | OK | A | A- | Stable | Stable | Positive operations, healthy financial resources, rapidly amortizing debt, growing enrollment through 2025-2026 academic year |
Table 2
First-quarter 2025 U.S. higher education outlook revisions | |||||
---|---|---|---|---|---|
Institution | State | Rating | Outlook to | Outlook from | Description |
Catholic University of America | DC | A- | Negative | Stable | Operating pressure likely in next two years, continued capital spending and supplemental reserve draws weakening financial resources |
Cleveland State University | OH | A+ | Negative | Stable | Trend of deficit operations, weak balance-sheet metrics that could decrease with upcoming capital projects |
Gallaudet University | DC | A- | Negative | Stable | Persistent enrollment declines and operating deficits, and expectations of further enrollment decline through fall 2025 |
High Point University | NC | A- | Positive | Stable | Robust operating performance, growing enrollment, improving financial resource ratios with fundraising success, rapidly amortizing debt |
Kent State University | OH | AA- | Negative | Stable | Declining financial resources and recent history of negative operations projected to improve with substantial cost reductions |
Metropolitan State University of Denver | CO | A | Negative | Stable | Additional debt plans for student housing, which we expect will pressure financial resource ratios |
University of Southern California | CA | AA | Negative | Stable | Operating deficits and below-median financial resources that could be inconsistent with the current rating without significant growth |
Table 3
First-quarter 2025 U.S. higher education maintained ratings | |||
---|---|---|---|
Institution | State | Rating | Outlook |
A.T. Still University | MO | A | Stable |
Albany Law School | NY | BBB | Stable |
Arizona State University | AZ | AA | Stable |
Assumption University | MA | A- | Negative |
Auburn University | AL | AA- | Stable |
Ball State University | IN | AA- | Stable |
Bethel University | MN | BB+ | Stable |
Boston College | MA | AA- | Stable |
Boston University | MA | AA- | Positive |
Brandeis Univeristy | MA | A+ | Stable |
Butler University | IN | A- | Stable |
Carlow University | PA | BBB- | Stable |
Chaminade University | HI | BB+ | Stable |
Cleveland Institute of Art | OH | BB | Stable |
Colgate University | NY | AA | Stable |
Colorado State University | CO | A+ | Stable |
Duquesne University of the Holy Spirit | PA | A | Stable |
Earlham College | IN | A- | Stable |
Eastern University | PA | BBB- | Stable |
Elizabethtown College | PA | BBB- | Stable |
Ferris State University | MI | A+ | Stable |
Fordham University | NY | A | Stable |
Franciscan University of Steubenville | OH | A | Stable |
Gannon University | PA | BBB+ | Stable |
Georgetown University | DC | A- | Stable |
Grand Valley State University | MI | A+ | Stable |
Gwynedd Mercy University | PA | BBB | Stable |
Harvard University | MA | AAA | Stable |
Hobart and William Smith Colleges | NY | A- | Negative |
Hope College | MI | A | Stable |
Indiana University of Pennsylvania | PA | BBB+ | Stable |
Kenyon College | OH | A | Stable |
Lake Superior State University | MI | BBB+ | Negative |
Lesley University | MA | BBB | Negative |
Massachusetts College of Pharmacy and Health Sciences | MA | AA | Stable |
Mount Saint Mary's University | MD | BB+ | Stable |
Mount Vernon Nazarene University | OH | BBB+ | Stable |
Nebraska State College | NE | A | Stable |
Nevada System of Higher Education | NV | AA- | Stable |
New York Law School | NY | BBB- | Stable |
Northern Arizona University | AZ | A+ | Stable |
Northwestern University | IL | AA+ | Stable |
Pennsylvania College of Technology | PA | A | Stable |
Rutgers University | NJ | A+ | Stable |
Saint Leo University | FL | BB | Negative |
Smith College | MA | AA+ | Stable |
Southern California Institute of Architecture | CA | BBB+ | Stable |
Southern Methodist University | TX | AA- | Stable |
St. John Fisher University | NY | A- | Stable |
St. Louis University | MO | AA- | Stable |
Stanford University | CA | AAA | Stable |
Stetson University | FL | BBB+ | Stable |
Texas Agricultural and Mechanical University | TX | AAA | Stable |
Transylvania University | KY | A- | Stable |
University of Arizona | AZ | AA- | Negative |
University of California | CA | AA | Stable |
University of Dayton | OH | A+ | Stable |
University of Delaware | DE | AA+ | Stable |
University of Kansas | KS | AA- | Stable |
University of Michigan | MI | AAA | Stable |
University of Northern Colorado | CO | A- | Stable |
University of Pennsylvania | PA | AA+ | Stable |
University of Scranton | PA | A- | Stable |
University of Tampa | FL | A- | Positive |
University of Toledo | OH | A | Stable |
University of Washington | WA | AA+ | Stable |
Virginia Commonwealth University | VA | AA- | Stable |
Widener University | PA | BBB | Stable |
Yale University | CT | AAA | Stable |
Yeshiva University | NY | BBB- | Stable |
Youngstown State University | OH | A+ | Negative |
Related Research
- Economic Outlook U.S. Q2 2025: Losing Steam Amid Shifting Policies, March 25, 2025
- Academic Medical Centers And The Intersection Of U.S. Not-For-Profit Higher Education And Acute Health Care, March 25, 2025
- Higher Education Brief: Pennsylvania, March 24, 2025
- U.S. Higher Education Rating Actions, 2024, Jan. 23, 2025
- U.S. States 2025 Outlook: Eyes On Washington, Focus On Budgets, Jan. 7, 2025
- U.S. Not-For-Profit Higher Education Outlook 2025: The Credit Quality Divide Widens, Dec. 5, 2024
- U.S. Not-For-Profit Acute Health Care 2025 Outlook: Stable But Shaky For Many Amid Uneven Recovery And Regulatory Challenges, Dec. 4, 2024
- The New "New Normal": Trends In U.S. Higher Education Post-Pandemic Versus Post-Recession, Sept. 25, 2024
- U.S. State Funding: Propping Up Public Universities In An Increasingly Competitive Landscape, July 18, 2024
Cheyenne Barber and Sid Kolli contributed research for this report.
This report does not constitute a rating action.
Primary Credit Analyst: | Stefan Turcic, New York (1) 212-438-0559; stefan.turcic@spglobal.com |
Secondary Contacts: | 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 |
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