Moody’s Ratings has upgraded New Jersey City University’s (NJCU) outlook to positive, the second time they have seen an improvement since November.
By John Heinis/Hudson County View
“Today’s decision by Moody’s to revise New Jersey City University’s ratings outlook to positive is not simply a financial milestone—it is a powerful affirmation of what is possible when a university chooses resilience over retreat, and purpose over paralysis,” NJCU Interim President Andrés Acebo said in a statement.
“In a national climate where Moody’s has recently issued a negative outlook for the American higher education sector, NJCU has defied the trend. We are not immune to the challenges confronting higher ed—but we are confronting them head-on. This moment affirms the truth we have always known: that institutions built on mission and grit can rise, even when the odds suggest otherwise.”
The upgrade is milestone for NJCU: The first time Moody’s has ever assigned a positive outlook to the university and the first consecutive annual outlook upgrades since at least 2003 – as far back as rating organizational records are available.
“Revision of New Jersey City University’s (NJCU) outlook to positive from stable reflects continued financial improvement and significantly reduced operating losses. NJCU also has strategically monetized real estate assets, strengthening reserves and enabling critical capital investments,” Moody’s wrote yesterday.
“While challenges remain, swift operational realignment and continued state support strengthen its position as a viable partner in recently announced merger plans with Kean University. Improvements in financial strategy, risk management, and management credibility are governance considerations and key drivers of this rating action.”
The consecutive upgrades from Moody’s comes after Fitch Ratings also previously revised the Rating Outlook on the Issuer Default Rating (IDR) and bond rating for NJCU to stable from negative in its most recent rating announcement, which was also in November.
