On November 3, 2025, Fitch Ratings announced that New Jersey City University (NJCU) had its credit rating raised from “BB+” to “BBB-.” The agency also placed the university on “Rating Watch Positive,” showing confidence in NJCU’s progress and its upcoming merger with Kean University.
The rating applies to NJCU’s Issuer Default Rating (IDR) and around $144.9 million in outstanding bonds issued through the New Jersey Educational Facilities Authority (NJEFA) — which include the 2007F, 2010G, 2015A, 2016D, 2021A, and 2021B series.
- Fitch Ratings upgraded NJCU’s credit rating to “BBB-” and placed it on “Rating Watch Positive.”
- The change followed improved financial management, state help, and growing enrollment.
- A merger with Kean University, signed on October 1, 2025, could create one of New Jersey’s largest public universities by 2026.
Financial Progress Supported by Oversight and State Help
The higher rating came after NJCU began rebuilding its financial stability under new leadership. A new management team started in January 2023 and worked under a state-appointed fiscal monitor who began oversight in September 2023. Together, they reduced the university’s large deficit and improved its cash position, reversing the financial strain that led to a downgrade in 2022.
Fitch stated that additional state support from New Jersey (A+/Stable) was an important factor in the recovery. The state provided extra funding for both operations and capital needs, strengthening the university’s financial standing and confirming its value within the state’s public education system.
NJCU serves about 5,700 students, most of whom are first-generation, minority, and Pell Grant-eligible. Fitch said the university’s mission to support these students is central to its public role and an important reason for continued state assistance.
In fall 2025, the university recorded its first enrollment increase since before the pandemic, ending a multi-year decline. This rise in enrollment showed progress in rebuilding student confidence and improving institutional stability.
While Fitch acknowledged possible risks, such as lower state aid or declines in student income, it found that NJCU’s overall position had improved from what it was in previous years. The agency pointed to the university’s stronger budget control and better liquidity as signs of recovery.
Kean University Merger Expected to Strengthen Outlook
Fitch’s “Rating Watch Positive” designation is linked to NJCU’s definitive merger agreement with Kean University, signed on October 1, 2025. Under the plan, and pending state and accreditor approvals by the end of summer 2026, NJCU will become an additional location of Kean University, and Kean will take over all NJCU assets and liabilities.
Fitch said the merger could result in a stronger combined institution with improved financial and operating conditions. Once complete, the new university would be one of the largest public universities in New Jersey, benefiting from shared resources and broader reach.
President Acebo’s Statement on NJCU’s Credit Upgrade
NJCU President Andrés Acebo said the credit upgrade showed the results of careful leadership and community effort during a difficult time for higher education. He thanked the NJCU community and state partners for helping rebuild the institution’s foundation and supporting its renewal plan.
Acebo also pointed to the merger with Kean University as part of NJCU’s long-term vision for partnership and progress. He expressed gratitude to New Jersey’s leaders and partners for investing in the university’s future and in its mission as it approaches its second century.
