Moody’s Signals Support for NJ University Merger
Moody’s Investors Service has upgraded New Jersey City University’s (NJCU) financial outlook from "stable" to "positive," coinciding with a letter of intent to merge with Kean University. This assessment comes as NJCU seeks solutions to its financial difficulties. The strategic merger plan, first announced in March, aims to bolster NJCU’s financial standing amid ongoing operational challenges.
In its report, Moody’s highlighted NJCU’s sustainable financial improvements and reduced operating losses, aided by strategic monetization of assets. This upgrade marks NJCU’s second positive rating within 15 months, following a previous upgrade from "negative" to "stable" in February 2024, after state directives urged the university to find a financially sound partner.
Interim President Andrés Acebo hailed the upgrade as a testament to the university’s resilience in the face of national higher education challenges, including funding cuts and policy shifts. Kean University, serving about 17,000 students, would absorb NJCU, which has 5,500 students, and rename it Kean Jersey City. The merger process will take up to two years, pending regulatory approvals, with no current plans for staffing cuts announced.
For updates, contact Rob Jennings at rjennings@njadvancemedia.com.
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