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U.S. Higher Education Rating Actions, Fourth-Quarter 2024

S&P Global Ratings took 17 rating actions and maintained 64 ratings in the U.S. not-for-profit higher education sector during the fourth quarter of 2024. The 17 rating actions are broken out as follows:

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The four upgrades were spurred by increased and sustained financial resources and enrollment, stronger operating performance, and improved state credit quality and support. The one positive outlook revision reflects a trend of operating surpluses with consistent growth in financial resources and improved demand metrics. The two outlook revisions to stable from negative were a result of stabilized enrollment and management teams' efforts to address operating issues, including balancing the operating budget and implementing stricter financial controls.

The four downgrades and six negative outlook revisions were, inversely, spurred by continued enrollment declines resulting in pressured operating performance, deteriorating financial resources, elevated endowment draws, and weakened demand metrics due to headline risk.

As discussed in our 2025 sector outlook and fiscal 2023 medians reports, credit quality has widened, consistent with our bifurcated outlook. Higher-rated institutions with strong demand and reputations, excellent fundraising, and sound resources have maintained or strengthened their market positions, while lower-rated institutions, such as those that are regional or less selective and lacking financial flexibility, continue to face heightened difficulties, including increased competition, strained operations, and liquidity and bond covenant pressures.

Due to demographic trends and delays with the Free Application for Federal Student Aid (FAFSA), fall 2024 enrollment was difficult for many of these schools, which faced enrollment declines pre-pandemic. In addition, falling net tuition revenue and increased costs are contributing to pressured operating performance. There are also uncertainties on how the new federal administration could affect institutions in coming years.

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

Fourth-quarter 2024 U.S. higher education rating actions
Institution State Rating to Rating from Outlook to Outlook from Description
Kettering University MI BBB+ A- Stable Negative Continued enrollment declines with a high level of student dependence, resulting in operating deficits
Manhattan University NY BBB BBB+ Negative Stable Sustained enrollment declines and weakening of credit characteristics, leading to operating pressures and increased endowment draws
Midwestern University IL AA- A+ Stable Positive Consistent, significant operating surpluses and increasing financial resources over time
Neumann University PA BBB- BBB Stable Negative Very weak financial resources and trend of operating deficits, which are expected to continue
Simmons University MA BB+ BBB- Negative Negative Continued enrollment declines creating operating pressure and anticipated heavy endowment draw, which could strain financial resources
Southern Illinois University IL A- BBB+ Stable Stable Stabilizing enrollment trend, increasing cash and investments, and improved state credit quality and support
St. John's College MD A- BBB+ Stable Positive Sustained financial resource growth, leading to less reliance on student-generated revenue for operations
Virginia Polytechnic Institute & State University VA AA+ AA Stable Stable Improved enrollment, selectivity, operating results, and financial resources to levels consistent with higher-rated peers

Table 2

Fourth-quarter 2024 U.S. higher education outlook revisions
Institution State Rating Outlook to Outlook from Description
American University DC A+ Negative Stable Recent enrollment and demand challenges, which could continue over the outlook period
Cleveland Institute of Music OH BBB- Negative Stable Declining enrollment and weakening demand metrics from headline risk, which could weaken operations and financial resources
Doane University NE A- Negative Stable Weak enrollment trend and pressured operations, resulting in elevated endowment draws
Hampden-Sydney College VA A Negative Stable Significant operating deficits, additional endowment draws, very high tuition discount rate, and weaker unrestricted financial resources
Hendrix College AR BBB- Stable Negative Recent enrollment stabilization, solid balance-sheet metrics, and management's plan to balance the operating budget
Rosalind Franklin University of Medicine & Science IL BBB+ Negative Stable Weakened operating results and a decline in financial resource ratios over the last few years
State University of Iowa IA AA Positive Stable Multiple years of large surpluses, consistent growth in financial resources, and improving demand metrics
University of Hartford CT BB+ Stable Negative Stabilized enrollment and strengthened financial controls, resulting in slimmer operating deficits
University of Portland OR A Negative Stable Consistent enrollment declines, resulting in growing operating deficits and weakening financial resources in the last three years

Table 3

Fourth-quarter 2024 U.S. higher education maintained ratings
Institution State Rating Outlook
Allegheny College PA A- Stable
Barton College NC BB+ Stable
Belmont University TN A Stable
Berklee College of Music MA A Stable
Boise State University ID A+ Stable
Boston University MA AA- Positive
Brown University RI AA+ Stable
California Institute of Technology CA AA- Stable
Case Western Reserve University OH AA- Stable
College of the Holy Cross MA AA- Stable
College of William & Mary VA AA Stable
Denison University OH AA Stable
Dickinson College PA A+ Stable
Drexel University PA BBB+ Stable
Duke University NC AA+ Stable
Emerson College MA BBB+ Stable
Gettysburg College PA A Stable
Haverford College PA AA- Stable
Holy Family University PA A- Stable
Houston Christian University TX BBB- Stable
Knox College IL BBB+ Stable
Lafayette College PA A+ Stable
Lake Forest College IL BBB Stable
Marian University IN BBB Stable
Marshall B. Ketchum University CA A- Stable
Massachusetts Institute of Technology MA AAA Stable
Mercyhurst University PA BB Negative
North Dakota State University ND AA- Stable
Olin College of Engineering MA A Stable
Purdue University IN AAA Stable
Ramapo College NJ A Stable
Randolph College VA BBB+ Stable
Reed College OR AA- Stable
Rivier University NH BBB Stable
Rose-Hulman Institute of Technology IN A- Stable
Southeastern University FL BB Stable
Temple University PA A+ Stable
The College of Idaho ID BBB Stable
The Juilliard School NY AA Stable
The New School NY BBB+ Stable
Universidad del Sagrado Corazon PR BB Stable
University of Central Missouri MO A+ Stable
University of Denver CO A+ Stable
University of Detroit Mercy MI BBB Stable
University of Evansville IN BBB- Stable
University of Illinois IL AA- Positive
University of Miami FL A- Stable
University of New Haven CT BBB- Stable
University of New Mexico NM AA- Stable
University of Pennsylvania PA AA+ Stable
University of Puget Sound WA A+ Stable
University of Rhode Island RI A+ Stable
University of St. Thomas TX BBB Stable
University of Texas System TX AAA Stable
University of Virginia VA AAA Stable
University System of New Hampshire NH A+ Stable
Ursinus College PA BBB Stable
Washington & Lee University VA AA Stable
Washington University MO AA+ Stable
Wellesley College MA AA+ Stable
West Virginia University WV A Stable
Wingate University NC BBB- Stable
Worcester Polytechnic Institute MA A Stable
York College of Pennsylvania PA A- Stable

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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