Despite National Headwinds, Morgan State University Maintains Strong A+ Credit Rating as Ambitious Growth Strategy Advances

Revised S&P Outlook Comes Amid Continued Enrollment Expansion, Rising Research Activity, and Long-Term Investment in Campus Infrastructure

BALTIMORE — Positioned as one of the nation’s fastest-growing and most influential urban public research universities, Morgan State University continues to distinguish itself in an increasingly challenging higher education landscape, particularly when it comes to its financial standing. In a recent review, S&P Global Ratings has affirmed the University’s long-standing A+ issuer credit rating, underscoring Morgan’s strong market position, sustained enrollment momentum and expanding research enterprise—even as the agency revised its outlook to negative in light of increased financial leverage and the University’s strategic investment in major capital improvements. 

For Morgan, the affirmation of its A+ rating reinforces the University’s competitive advantage at a time when institutions across the country are contending with declining enrollments, rising costs and tightening federal policy environments. S&P’s evaluation highlights Morgan’s 55.5% five-year enrollment surge, its growing national draw, and its strengthened research capacity—factors that continue to elevate the University’s national standing and accelerate its progress toward achieving Carnegie R1 classification. 

“While S&P’s revised outlook reflects the financial pressures confronting universities nationwide, Morgan State University remains on solid footing and firmly committed to its long-term vision. The broader economic landscape—from rising operational costs to shifting federal policies—has created headwinds for the entire higher education sector,” said David K. Wilson, president of Morgan. “Yet through all of this, Morgan continues to grow, to attract record numbers of students and to expand our research enterprise at a pace unmatched in our history. A strong credit rating enables institutions like ours to strategically leverage it when needed, allowing us to invest in our campus infrastructure, enhance our facilities, and fuel the momentum of a university on the rise.”

S&P’s outlook change comes as Morgan implements a comprehensive residential and campus modernization plan designed to meet the demands of its record enrollment gains. Rather than scale back these investments—many of which address long-deferred infrastructure needs—the University opted to responsibly leverage its strong credit rating to move forward with critical projects that will serve students well into the future. This strategy reflects not only institutional confidence but a deep commitment to ensuring that Morgan can house, support and educate its rapidly growing student population.

“Morgan is growing, plain and simple. And S&P’s revised outlook for the University is indicative of the realities of today’s financial environment, where rising operating costs, increased demand for student services and necessary capital investments are reshaping the fiscal landscape for universities across the country,” said David LaChina, executive vice president for Finance and Administration. “At Morgan, our strategy has been—and will continue to be—to make thoughtful, forward-looking investments that support our growing enrollment and expanding research mission. A strong credit rating is a tool we have used responsibly to modernize our campus, improve housing capacity and address long-deferred infrastructure needs. At the same time, we have remained operationally disciplined in our budgeting, aligned with state funding parameters and committed to strengthening our financial position over time.”

In 2024, S&P affirmed Morgan’s A+ long-term issuer credit rating with a stable outlook, and Moody’s likewise affirmed its A1 long-term issuer credit rating, also with a stable outlook.

The stressors reflected in Morgan’s revised outlook mirror a broader national trend. Moody’s Ratings recently downgraded the State of Maryland’s long-held Aaa bond rating—its first downgrade in more than 50 years—citing national economic headwinds and increased state-level financial constraints. At the same time, Moody’s has projected a negative outlook for the entire higher education sector, pointing to federal policy risks, rising costs, competitive enrollment environments and the possibility of reduced research funding—all factors S&P notes in its evaluation of Morgan.

Despite these national challenges, Morgan continues to outperform its peers in key areas. Demand for admission has grown sharply, research expenditures have increased year over year, and the University has secured major philanthropic support—including a transformative $63 million unrestricted gift to be recognized in FY2026. State appropriations remain a strong stabilizing force, representing more than 40% of Morgan’s operating revenue and grounding the University’s ability to weather shifts in the broader economic landscape. 

Added Wilson, “We recognize the importance of managing the resources our institution receives wisely, and we remain confident that the investments we are making today will strengthen Morgan’s foundation for generations to come.”

Looking ahead, the University remains well-positioned to advance its mission and sustain its upward trajectory. S&P notes that a return to a stable outlook is achievable with continued improvement in operating margins, stronger financial resource ratios and further gains in student success—areas in which Morgan has already demonstrated significant progress. 

The University’s ongoing growth and strategic investments frame a clear picture: Morgan is preparing not simply for the institution it is today, but for the one it is rapidly becoming. Through disciplined financial planning, robust state partnership and visionary leadership, Morgan State University continues to build a modern, research-driven, nationally competitive institution poised to thrive in the decades ahead.

About Morgan

Morgan State University, founded in 1867, is a Carnegie-classified high research (R2) institution offering more than 150 baccalaureate, master’s degree, doctorate and certificate programs. As Maryland’s Preeminent Public Urban Research University, and the only university to have its entire campus designated as a National Treasure by the National Trust for Historic Preservation, Morgan serves a multiethnic and multiracial student body and seeks to ensure that the doors of higher education are opened as wide as possible to as many as possible. For more information about Morgan State University, visit www.morgan.edu.

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Media Contacts:
Larry Jones, Dell Jackson or Cheryl Stewart, for Morgan State University PR
443-885-3022