Moody’s Ratings has upgraded New Jersey City University‘s issuer and revenue bond ratings to Baa3 from Ba2.
The March 30 move restores the institution to investment-grade status and places it under review for a possible further upgrade. It also marks the latest sign of financial progress under President Andrés Acebo.
The action reflects continued momentum in NJCU’s turnaround, driven by leadership’s efforts to stabilize operations, reduce debt and improve overall financial performance. It also highlights progress toward a planned merger with Kean University.
The combination has received a formal legislative commitment from the state. Pending final approvals, is expected to close July 1, 2026.
Moody’s cited several key improvements, including a nearly $35 million reduction in debt, stronger operating performance and more stable liquidity.
NJCU also has benefited from $17 million in state stabilization funding over the past two fiscal years and additional support for capital needs and oversight from a state-appointed fiscal monitor.
The agency noted the institution’s role as a regional public university and Hispanic-Serving Institution will continue under the planned integration. Kean’s stronger financial profile is expected to further support long-term credit strength.
Continuing NJCU’s turnaround
The review for a potential additional upgrade will focus on the successful completion of the merger, further gains in liquidity and operating performance, as well as how the partners restructure existing debt within the combined institution.
The upgrade marks the latest milestone in NJCU’s financial recovery. Over the past two years, the university has recorded a series of positive rating actions. NJCU received consecutive outlook upgrades from Moody’s Ratings that moved it from negative to stable in 2024, and from stable to positive in 2025. It has also received multiple upgrades from Fitch Ratings.
Together, the latest action signals growing confidence that NJCU’s restructuring efforts — including debt reduction, improved financial management and state-backed support — are taking hold, with the Kean merger positioned as a key driver of sustained stability.
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