One of the nation’s “Big Three” credit ratings agencies is signaling support for the proposed merger of two of New Jersey’s public universities.
Moody’s upgraded New Jersey City University’s financial outlook from “stable” to “positive” Monday, four days after the school’s president joined the president of Kean University in signing a letter of intent to pursue a merger.
The Wall Street rating agency cited the Hudson County school’s proposed merger with Kean University, among other factors, in announcing the rating change.
The two public universities announced they were considering a merger in March as New Jersey City University looked for a solution to its serious financial problems.
The change in New Jersey City University’s outlook to positive “reflects continued financial improvement and significantly reduced operating losses. NJCU also has strategically monetized real estate assets, strengthening reserves and enabling critical capital investments,” Moody’s wrote in a five-page report.
It was New Jersey City University’s second upgrade in 15 months. Moody’s upgraded the university’s outlook from “negative” to “stable” in February 2024, eight months after the university was directed by the state to find a “fiscally sound” partner.
New Jersey City University and Union County-based Kean University announced their proposed merger March 5, four weeks before the deadline set by the state.
Kean University enrolls approximately 17,000 students while New Jersey City University has 5,500 students, officials said previously.
“While challenges remain, swift operational realignment and continued state support strengthen its position as a viable partner in recently announced merger plans with Kean University,” Moody’s said in its report. “Improvements in financial strategy, risk management, and management credibility are governance considerations and key drivers of this rating action,”
Kean University President Lamont O. Repollet, on left, and New Jersey City University Interim President Andrés Acebo signing a letter of intent advancing a proposed merger of both universities, at Kean University in Union Township, New Jersey, May 15, 2025.Photo courtesy of Kean University
Andrés Acebo, New Jersey City University’s interim president, said the rating upgrade “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."
In March, Moody’s dropped its outlook for the entire higher education sector from “stable” to “negative" due to research funding cuts, rising endowment taxes, restrictions on foreign students and other policy changes from President Trump’s administration.
Acebo said New Jersey City University is improving it financial outlook despite those pressures.
“We are not immune to the challenges confronting higher ed — but we are confronting them head-on. This moment affirms the truth we have always known: that institutions built on mission and grit can rise, even when the odds suggest otherwise," Acebo said.
It could take up to 24 months to conclude the merger, which is subject to regulatory and accreditation approvals, along with a final agreement between the two universities.
Under the deal, New Jersey City University would be renamed Kean Jersey City. Kean University’s name would remain unchanged.
Kean would assume New Jersey City University’s assets and liabilities as part of the deal. Kean would also appoint a chancellor to lead Kean Jersey City while assuming executive oversight of the campus.
Neither university has said whether a merger will include staffing cuts.
Stories by Rob Jennings
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Rob Jennings may be reached at rjennings@njadvancemedia.com.