Fitch Ratings has upgrade New Jersey City University (NJCU) credit rating to “BBB-” from “BB+” on Monday, enough to place them on a “rating positive watch.”
By John Heinis/Hudson County View
“While the current rating upgrade is based on the recent improvements at NJCU as a standalone institution, the Rating Watch Positive is due to NJCU’s signing on Oct. 1, 2025 of a definitive merger agreement with Kean University, a neighboring New Jersey public institution,” Fitch wrote.
“Subject to approvals required for the merger that management expects by the end of summer 2026, NJCU will become an additional location of Kean, and Kean will assume all NJCU assets and liabilities. The Rating Watch Positive reflects the likelihood that the merged institution — which would become one of the state’s largest public universities — will have stronger credit characteristics than NJCU’s current ‘BBB-‘ rating.”
They continued that factors that could lead to a downgrade are reduction of support from the State of New Jersey and attrition of NJCU’s student population or net student revenues.
Conversely, completing the merger with Kean University would potentially factor into a credit upgrade.
“Fitch Ratings’ upgrade of New Jersey City University to BBB- with a Positive Watch affirms that our efforts have made a difference and that renewal is real especially when we make difficult decisions that come with sacrifices,” NJCU President Andrés Acebo wrote on social media.
“I’m grateful to every hand, heart, and voice that helped rebuild this foundation and reimagine its future during one of the most challenging eras in higher education. With a historic merger with Kean University on the horizon, this milestone reflects a shared vision of renewal, partnership, and purpose. We are deeply grateful to our state’s leadership and partners for investing in our strategic plan and work to renew our mission for its second century.”
