Fitch Ratings, one of three credit reporting agencies in the U.S. covering the higher education sector, has affirmed the University of New England's strong financial positioning, upholding the University's "A+" issuer default rating and maintaining its "positive" financial outlook.
According to the Fitch report, UNE's credit rating reflects its market strength, strategic investments, and consistent demand from a broad geographic student base. Fitch's analysts noted that UNE's comprehensive cost management, robust cash flow, and investment in long-term resilience contribute to its strong performance amid the changing higher education landscape.
The rating underscores UNE's stability and strategic growth, as well as its role as Maine's leader in health care education. Fitch advisors noted UNE's market position, prudent financial management, and resilience through capital and strategic growth initiatives as factors in this year's report.
UNE President James Herbert said the Fitch rating is a testament to the University's sound financial stewardship and commitment to educational quality.
"By adapting to changing demographics and aligning our degree programs to meet evolving market needs, we have been able to turn today's higher education headwinds into powerful opportunities for UNE," Herbert said. "This positive outlook reflects our deep commitment to academic excellence, fiscal responsibility, and a forward-thinking approach that ensures UNE remains a leader in shaping a bright future for our students and communities."
UNE's ongoing initiatives, including the nearly completed Harold and Bibby Alfond Center for Health Sciences and the relocation of its College of Osteopathic Medicine from Biddeford to Portland, are expected to support further enrollment growth, the agency reported. These strategic moves align with Fitch's outlook, anticipating favorable enrollment starting with UNE's fall 2025 class and bolstered by new academic programs.
In 2023, Moody's Investors Service, another top credit rating agency, elevated UNE's credit rating from A3 to A2 with a "stable" financial outlook, citing "excellent operating performance and diverse academic offering(s) within high-demand disciplines" that "reflects expectations of continued strong operating performance" despite student market challenges.