It’s easy to chart the numbers and financial facts — ratings services do that all day. So, when Moody’s announced Monday that it has upgraded New Jersey City University’s outlook from stable to positive, it’s logical to point out the following:
- The increase is the second consecutive outlook upgrade for a university that went decades without one;
- The positive grade is NJCU’s first in a generation;
- The upgrade comes during the same time that Moody’s not only downgraded higher education as a sector, it downgraded the U.S. government’s credit rating.
NJCU President Andres Acebo obviously is thrilled by Moody’s action, but he is quick to look past the numbers and to the mission.
“It’s affirming a trajectory — showing that the hard work, hard decisions and deep and important collaboration and investment with our state partners has proven worthy of that investment,” he told BINJE.
“It shows that investing in our mission, our students, our faculty, our staff and our broader community, is one that can significantly produce returns in the state’s interest.”
The turnaround at NJCU cannot be overstated.
The school declared a financial emergency in June of 2022, when it was essentially bankrupt. Acebo, who was installed as interim president in January of 2023, and the team he assembled began the hard work necessary for the school’s survival.
NJCU was rewarded in February of 2024, when Moody’s upgraded the school’s outlook from negative to stable.
“I’m very forward thinking and forward looking, but I would be remiss to not also speak to where we were as an institution — fiscal exigency, more than 15 years of a negative outlook and rating downgrades, an erosion of our cash reserve position and chronic depletion of finite resources from the state in a stressed state budget environment,” he said.
Moody’s, in a release about the upgrade, credited the action of Acebo and the school’s leaders.
“Revision of New Jersey City University’s outlook to positive from stable reflects continued financial improvement and significantly reduced operating losses,” Moody’s wrote. “NJCU also has strategically monetized real estate assets, strengthening reserves and enabling critical capital investments.”
To be clear, the school’s financial ratings are not perfect.
Moody’s did not increase the school’s revenue bond rating (it was affirmed as a Ba2 issuer, which lists as non-investment grade speculative), but it does show a positive trend for the school at a time it’s ready to take its next big step — merging with Kean University.
Last week, Acebo and Kean President Lamont Repollet signed a Letter of Intent advancing a proposed historic merger that would integrate NJCU into Kean.
The planned merger, subject to regulatory and accreditation approvals and a formal definitive agreement to be entered into between the two institutions, would see Kean University assume NJCU and operate an additional location to be known as “Kean Jersey City.”
The nonbinding LOI outlines a multi-phase regulatory process beginning with a change in control, targeted for June 2026, pending approvals.
Acebo said the upgrade improves NJCU’s ability to merge. Moody’s agreed.
“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,” Moody’s wrote. “Improvements in financial strategy, risk management, and management credibility are governance considerations and key drivers of this rating action.”
The relationship with the schools after the merger will be similar to how Rutgers-Newark and Rutgers-Camden are overseen by Rutgers-New Brunswick.
Acebo said you cannot overstate the impact the merger would have on students in New Jersey and universities across the country.
“I think it’s a gamechanger for public higher education in New Jersey,” he said. “I’m confident that that will prove, in due course, to be a national model on how you honor mission — and scale its reach — by finding like-minded institutions to leverage resources in a highly competitive and a highly challenged environment.”
The merger, the upgrade: Acebo said these positive moments this month are a reward for the sacrifices NJCU has made.
“We made difficult decisions that weren’t just for austerity’s sake but survival,” he said. “This was always about enshrining a mission, a place and accessibility to those who we are privileged to serve and metaphorically, build that bridge to our second century.
“Today, Moody’s, in no uncertain terms, said that the outlook of the future we’re building is positive.”
