Northeastern Illinois University received a one-notch upgrade to its S&P Global credit rating from BB+ to BBB-, elevating the University to an investment grade status with a “stable” outlook. S&P Global raised their rating based on Northeastern’s increasing state appropriations in the past several years, moderation of enrollment declines and the improvement of our financial operations.
“As a result of this upgrade, the University is better positioned to obtain more favorable debt terms due to its creditworthiness,” said President Katrina E. Bell-Jordan. “Additionally, the University can reap several benefits from refinancing, including improved operational flexibility and increased financial resources to invest back in the University community.”
In April 2022, Northeastern received a one-notch upgrade from Moody’s Investment Service. Moody’s had given Northeastern a three-notch upgrade in December 2021, which marked a significant turnaround for the financial outlook of the University.
S&P Global’s upgrade reflects expectations that Northeastern will continue to manage its expenses in a fiscally responsible manner.
Factors that could lead to future upgrades include:
- Continued improvement of enrollment trends and demand metrics;
- Improvement in financial operations to sustain consistent surpluses; and
- Continued growth in balance sheet levels.
