New Jersey City University continues its remarkable financial turnaround.

Moody’s Ratings upgraded the Jersey City institution’s financial outlook from stable to positive May 20, while affirming its Ba2 issuer and revenue bond ratings.

In its analysis, Moody’s said the revised outlook reflects continued financial improvement and significantly reduced operating losses at NJCU. The financial services company also noted that NJCU has strategically monetized real estate assets, strengthened reserves and enabled critical capital investments.

“Today’s decision by Moody’s to revise New Jersey City University‘s ratings outlook to positive is not simply a financial milestone – it is a powerful affirmation of what is possible when a university chooses resilience over retreat, and purpose over paralysis,” said NJCU interim President Andres Acebo.

The upgrade follows another from Moody’s last February. At that time, the ratings agency upgraded NJCU’s outlook form negative to stable. This move marks the first time Moody’s has ever assigned a positive outlook to NJCU. It’s also the first consecutive, annual outlook upgrades for the school since at least 2003.

Growing confidence

NJCU says the consecutive upgrades reflect growing confidence in the university’s financial management and future sustainability after years of navigating significant economic challenges, which NJBIZ has extensively reported on.

“In a national climate when Moody’s has recently issued a negative outlook for the American higher education sector, NJCU has defied the trend,” said Acebo. “We are not immune to the challenges confronting higher ed – but we are confronting them head-on. The moment affirms the truth we have always known: that institutions built on mission and grit can rise, even when the odds suggest otherwise.”

While acknowledging the challenges that remain, Moody’s also noted the recently announced merger plans between NJCU and Kean University (which NJBIZ has also extensively reported on); as well as improvements in financial strategy, risk management, management credibility, continued operational progress and more. All key drivers, Moody’s says, of this rating action.

Acebo added, “We are deeply appreciative of the steadfast support from our state partners, including our state-appointed fiscal monitor, whose commitment to NJCU’s mission as a vital public institution has been instrumental and contribute meaningfully to our progress.”