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U.S. Higher Education Rating Actions, First-Quarter 2025

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:

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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

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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