Moody’s Upgrades NJCU Credit Rating, Places University Under Review for Further Upgrade Ahead of Kean Merger

Moody’s Ratings upgraded New Jersey City University’s issuer and revenue bond ratings on March 30, 2026, moving the university from Ba2 to Baa3 and placing it under review for a potential additional upgrade as its planned merger with Kean University moves closer to completion.

The ratings agency cited the university’s continued financial progress and a signed legislative commitment from the State of New Jersey as key factors in the decision. NJCU carried $205 million in outstanding debt as of June 30, 2025.

The merger between NJCU and Kean University is targeted to close on July 1, 2026, pending final accreditation and U.S. Department of Education approvals. Under the terms of the agreement, all debts of New Jersey City University would transfer to Kean University upon completion. New Jersey Governor Phil Murphy signed legislation advancing the merger in January 2026.

In its rating rationale, Moody’s pointed to NJCU’s established role as a regional higher education provider and Hispanic Serving Institution as a continued strength going into the merger, noting the university will operate as Kean Jersey City following the transition.

Moody’s also noted measurable financial improvements at the university. NJCU reduced its outstanding debt by nearly $35 million from fiscal 2024, generated a roughly 10% EBIDA margin, and maintained approximately 54 monthly days cash on hand as of June 30, 2025. The state provided $17 million in stabilization funds across fiscal 2024 and 2025, along with additional funding earmarked for deferred maintenance on the campus.

In fall 2025, NJCU enrolled 4,485 full-time equivalent students. The university reported operating revenue of approximately $151 million for fiscal 2025.

Moody’s identified completion of the merger as the primary factor that could lead to a further upgrade, while warning that an inability to complete the merger or a material deterioration of liquidity could result in a downgrade.

The review period, according to the agency, will focus on tracking final approvals and the structure of NJCU’s existing debt obligations within the merged university, which could include refinancing, restructuring, or amending those obligations.