As Kean University moves toward finalizing its merger with New Jersey City University July 1, the school received another vote of confidence from major credit rating agencies, which cited Kean’s financial stability, enrollment growth and strategic leadership.

Moody’s Ratings assigned Kean an A2 rating with a stable outlook for its proposed Series 2026 revenue and refunding bonds. The agency also affirmed its existing A2 issuer and outstanding revenue bond ratings. Additionally, S&P Global Ratings affirmed the university’s A- long-term rating and revised the outlook to positive.

The pending merger follows more than a year of planning and negotiations driven in part by NJCU’s financial challenges and a broader state effort to preserve access to public higher education in Jersey City. The transaction advanced following approval from the Middle States Commission on Higher Education. The merger will ultimately create Kean Jersey City and a combined institution serving roughly 24,500 students.

The merger was further supported by Senate Bill 4881/Assembly Bill 6212, which then-Gov. Phil Murphy signed into law Jan. 12. The legislation authorized NJCU to become an additional location of Kean University. It also appropriated $25 million to support transition and stabilization efforts tied to the merger.

Validating the work

In its report, Moody’s pointed to Kean’s strong state support, healthy balance sheet and management credibility during the merger process. S&P highlighted the university’s record enrollment growth, rising applications, R2 Carnegie research designation and expanding online initiatives.

“These affirmations demonstrate confidence in Kean University’s financial stewardship, strategic direction and long-term vision for growth,” said Lamont Repollet, president of Kean University. “As we prepare to welcome NJCU into the Kean family, we are building a stronger, more expansive urban research university that will create even greater opportunities for students across New Jersey.

“This recognition validates the work our University community has done to strengthen Kean while advancing access, innovation and student success.”

“These ratings validate the University’s disciplined financial planning and thoughtful approach to the NJCU merger,” said Steve Fastook, chair of the Kean University Board of Trustees. “The agencies recognized Kean’s strong operating performance, stable liquidity and responsible debt management, even as we undertake a transformational expansion of our mission and footprint.”

S&P also cited Kean’s expanding research initiatives and development of the new 1085 Morris Ave. building, which is expected to support programs focused on biotechnology and artificial intelligence.