Northeastern Illinois University receives upgraded rating from Moody’s

Northeastern Illinois University received an upgrade to its issuer rating and certificates of participation by Moody’s Ratings (formerly Moody’s Investors Service), a leading global rating agency for debt issuers and investors.

The University’s issuer rating — the overall ability to meet financial obligations — went up one notch from Ba1 to Baa3, bringing it to investment grade status. Its certificates of participation rating — a credit rating for municipal projects and organizations — is also up one notch from Ba2 to Ba1. Northeastern’s outlook is considered “stable.”

These ratings continue the University’s upward financial momentum, having received a one-notch upgrade to its S&P Global credit ranking in 2024 and upgrades from Moody’s in 2021 and 2022.  

“This upgrade represents an important milestone for Northeastern and affirms the progress we continue to make in strengthening our financial position,” said President Katrina E. Bell-Jordan, Ph.D. “As a result of achieving an investment-grade issuer rating from Moody’s, Northeastern is better positioned to access capital markets on more favorable terms, providing greater financial flexibility and supporting long-term institutional stability.”

Moody’s cited several factors contributing to this upgrade, including the University's targeted investments to boost enrollment, prudent expense management, sustained support from the State of Illinois and overall stable operating performance. The rating also reflects Northeastern’s capital plans, manageable debt profile and the absence of significant near-term borrowing needs.

“I am very pleased with this outcome,” Vice President for Finance and Administration Beni Ortiz said. “It confirms the hard work we have done to manage expenses responsibly and it positions the University well as we continue moving forward.”

Factors that could lead to future upgrades include:

• Continued improvement in operating performance
• Positive movement in enrollment and growth in net tuition revenue
• Maintenance of strong liquidity and balance sheet levels