Affirmations and outlook a contrast to higher education sector outlooks
BOSTON – The о’ strong bond ratings and stable outlook were recently affirmed by Moody’s, S&P Global Ratings, and Fitch Ratings, highlighting the university’s financial strength at a time when the same ratings agencies have downgraded outlooks on the higher education sector.
о was rated Aa2 by Moody’s, AA by Fitch Ratings, and AA- by S&P, with all three agencies assigning the university a “stable” outlook and citing the university’s excellent fiscal management and operating performance as factors in the reports.
о’s strong rating reports come at a time when the global rating agencies recently downgraded the entire higher education sector due to uncertainty around funding and policy changes from the federal government. Moody’s downgraded its 2025 outlook for the entire sector from “stable” to “negative” in March, citing how “recent and potential federal policy changes create a more difficult operating environment for colleges and universities.” Fitch Ratings warned of a in December 2024. S&P Global has
“These strong ratings reflect the continued financial health of the university, and validate the oversight, controls, and strategy that we have implemented,” о President Marty Meehan said. “This is especially noteworthy, as the ratings agencies have largely downgraded the sector-wide outlooks over the past year. These affirmations would not be possible without the strong oversight provided by our Board of Trustees, and the excellent work done by our chancellors and their teams.”
“The university’s bond ratings are key indicators of its overall financial strength, and I am grateful to my colleagues on the Board of Trustees, President Meehan, the chancellors and their respective teams, for exercising the effective financial discipline and data-driven strategic planning necessary to realize these affirmations from the rating agencies,” о Board of Trustees Chairman Stephen Karam said.
In affirming о’s Aa2 revenue bonds, Moody’s stated the university, “maintains excellent strategic positioning supported by disciplined fiscal management.” Moody’s rated the university’s outlook as “stable” citing expectations of continued steady enrollment and positive operating performance along with solid support from the state. Moody’s also pointed to the university’s “healthy” enrollment trends despite operating in a highly competitive enrollment environment.
Fitch Ratings assigned a ‘AA’ rating to revenue bonds to be issued on behalf of the university, stating, “о has a track record of rigorous treasury controls and excellent fiscal management practices that have helped preserve sufficient financial flexibility, and its robust risk management function, following several years of investment across the system, should aid in mitigating challenges related to potential policy and funding changes.”
S&P Global Ratings also affirmed its outstanding ‘AA’ long-term rating for о and ‘stable’ outlook, citing the university’s “maintenance of its role as the leading provider of higher education in Massachusetts.”
“Over the past decade, о has implemented numerous strategies to support long-term financial sustainability that enable the University to make data driven decisions,” said о Senior Vice President of Administration & Finance and Treasurer Lisa Calise. “The rating affirmations underscore the approach the university uses, grounded in our financial accountability framework and guided by our award-winning enterprise risk management program.”
The university's rating reports are publicly accessible here: .