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Fitch Ratings, one of three credit reporting agencies in the U.S. covering the higher education sector, , upholding the University’s “A+” issuer default rating and upgrading its financial outlook from “stable” to “positive.” 

UNE is the only institution of higher education in New England to receive an outlook revision to positive by Fitch so far in 2023 and one of only two in the Northeast region to receive this change.

According to the Fitch report, overall financial ratings are derived from the consideration of many factors, including the institution’s financial profile, revenue defensibility, and operating risks. The 2023 report names UNE’s “strong cost management and cash flow,” “steady demand despite competitive (and) demographic pressures,” and “significant strategic and capital investments” as factors in the overall ratings.

Affirmation of the “A+” rating “reflects UNE's solid market position with an expanding undergraduate geographic draw and role as the sole or leading provider of professional health care education in Maine, which helps counter difficult state and regional population trends,” the analysts said.

The report acknowledges the demographic and financial challenges faced by colleges and universities, which have forced many to scale back academic offerings, lay off faculty, or even close. However, Fitch asserts that UNE’s strong operating performance, diverse catalog, and effective budgeting reflect a “meaningful resilience” amid this financial backdrop — a key motivator in upgrading the University’s financial outlook to “positive.”

President James Herbert said the ratings are a demonstration of UNE’s strong financial leadership, ability to pivot to meet market needs, and commitment to providing a phenomenal return on investment for graduates.

“By remaining nimble in the face of changing demographics and aligning our programs with evolving market demands, we have not only confronted the headwinds facing higher education but have proactively turned them into opportunities for growth,” Herbert said. “This positive outlook is a reflection of our unwavering dedication to academic excellence, strong financial stewardship, and a dynamic approach to higher education that ensures our University remains a leader in shaping the future.”

The revised Fitch ratings come just months after 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.

“These positive shifts are a testament to UNE’s commitment to strategic financial initiatives that position the University for long-term success,” said Jim Irwin, senior vice president for Finance and Administration. “By prioritizing innovative financial management, prudent investments, and a forward-thinking approach, we have not only weathered economic challenges but positioned ourselves for sustained growth.”