S&P and Moody’s Affirm Strong Credit Ratings for Morgan State University

Consistently Strong Finances Support Morgan’s Forward Momentum in Student Success, Research and Other Areas

BALTIMORE—Continuing a four-year run of positive news for Maryland’s flagship public urban research institution, S&P Global Ratings has affirmed its A+ long-term issuer credit rating, with a stable outlook, for Morgan State University. The agency cited Morgan’s very strong enterprise risk profile in the credit overview of its most recent annual report, which also noted the University’s substantial increase in student enrollment in recent years and the consistent financial support for Morgan by the State of Maryland.

S&P’s assessment aligns with the latest credit opinion released by fellow Big Three rating agency Moody’s Investors Service last December. Moody’s affirmed its A1 long-term issuer credit rating, also with a stable outlook.

“These high-level confirmations of our institution’s financial strength are welcome news, but they are not unexpected,” said Morgan President David K. Wilson. “Morgan’s entire leadership has worked diligently and collaboratively with our finance team for many years, in a process of continuous innovation to enhance the financial stewardship of the University. This excellence in stewardship is vital to our mission of growing the future through the success of our students, and it is critical in our capacity to reach many of the key milestones outlined in our Transformation Morgan 2030 strategic plan.”

Specific, diverse credit strengths of Morgan noted by the two rating agencies include:

S&P

• The 29.8% increase in full-time-equivalent student enrollment at Morgan from Fall 2019 to Fall 2023, with an increasing number of student applications and burgeoning out-of-state enrollment (countering the national trend toward enrollment declines)
• Low university debt and the forgiveness of approximately $33.7 million in HBCU loans
• Consistent State support for capital and research initiatives, contributing to the modernization of the University’s physical infrastructure

Moody’s

• Strong strategic position as a moderately large, comprehensive research university and public HBCU with growing enrollment, located in Baltimore
• Consistent, growing operating appropriations from the AAA-rated State of Maryland
• Sustained, significant State capital support underpinning a low age of plant of 11 years; debt service at a modest 1% of expenses; and high five-year average capital spending
• Programmatic diversity enhanced by multidisciplinary research
• Fiscal 2023 research activity at 21% of operating expenses

Morgan’s executive vice president for Finance and Administration, David LaChina, noted that the university’s financial positives extend well beyond those noted by Moody’s and S&P and are making a broad impact.

“Financial stability, substantiality and sufficiency are key financial objectives of the administration,” LaChina said. “Morgan strives to manage its funding from students and the State to maximize utility for the benefit of students, faculty and staff.

“The University is making investments in new programs aimed at diversifying the University’s student base and providing long-term financial sustainability,” LaChina continued. “Further, research expenditures have grown consistently over the past few years and are having an important impact not only on students, faculty and staff but on the surrounding community and the State.”

To limit institutional risks, assess processes, improve best practices, promote efficiency and strengthen compliances, Morgan participates in multiple annual audit examinations: by an independent external auditor, by the State of Maryland Legislative Office and by the University’s own Internal Audit & Management Review office. In April 2023, Morgan implemented an Enterprise Risk Management Program, to identify, assess, evaluate, mitigate and minimize operational and fiscal vulnerabilities across the full spectrum of University functions, and appointed a new director of Enterprise Risk Management to support the elevation of operational efficiency and effectiveness using best business practices in higher education. 

Stewarding sound fiscal acuity while experiencing a historic boom in enrollment—ballooning to a record 10,739 students in fall 2024—presented unique circumstances for Maryland’s largest Historically Black College and University (HBCU) and fastest-growing public, four-year institution. Morgan met on-campus housing demands and continued its campaign to transform its Northeast Baltimore campus, investing more than $1.2 billion in infrastructure over the last decade.

Within the last year, Morgan introduced two new facilities on campus: a 208,000-square-foot academic facility, the Health and Human Services Center, and Legacy Hall, a 12-story modern apartment-style residence hall. The University also reopened three legacy buildings that underwent extensive modernization and renovation (Baldwin Hall and Cummings House, two student housing facilities, and the Edward P. Hurt Gymnasium).

About Morgan

Morgan State University, founded in 1867, is a Carnegie-classified high research (R2) institution offering more than 150 academic degree and certificate programs leading to degrees from the baccalaureate to the doctorate. 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