Nazareth University earns BBB+ credit rating and stable outlook from Standard and Poors

This is a significant achievement amidst a challenging time for the higher education sector

Rochester, NY (04/09/2025) — Standard & Poor's Global Ratings affirmed its BBB+ long-term rating on the Monroe County Industrial Development Corp., N.Y.'s existing revenue bonds, issued for Nazareth University, with a stable outlook. This is a strong accomplishment for Nazareth at a time when myriad challenges face the not-for-profit higher education sector.

"To be affirmed with a stable outlook in the current climate is more than a noteworthy achievement," said Karen Kuppinger, vice president for finance and administration. "It reflects the highest standards, competency, and commitment on behalf of the institution. And it speaks well to our sustainable financial future."

S&P says while Nazareth operates in a highly competitive environment and is affected by changing demographic trends, the challenges are offset by solid student success with above-median retention and graduation rates. Nazareth refined its recruitment strategy and saw success as first-year applications increased by 41% for fall 2024. The university is more selective with a lower admit rate in fall 2024.

The S&P stable outlook reflects its expectation that over the next two years, Nazareth maintains incremental improvement in break-even operations and stability in its enrollment metrics.

The final rating of BBB+ reflects the university's solid financial practices and conservative debt profile.

"We take great pride in the proactive fiscal responsibility the University has demonstrated, coupling growth in innovative academic programs and student success with prudent cost management, execution of an effective plan for budget restructuring, and creation of sound long-term budget projections," said Nazareth President Beth Paul.