Moody’s Affirms Morgan State’s A1 Credit Rating and Stable Outlook

Strong State Investment, Surging Enrollment, and Expanding Research Reinforce the University's Financial Foundation for its Next Era of Growth

BALTIMORE — A strong credit rating does more than measure financial health: it strengthens investor confidence, preserves access to capital and helps a university turn long-term priorities into better places to learn, live, teach and discover. Morgan State University enters its next phase of growth with that important advantage intact, following Moody’s Ratings’ affirmation of the University’s A1 issuer rating with a stable outlook.

Building upon its 2024 assessment of the nation’s third-largest HBCU, Moody’s most recent credit analysis points to Morgan’s strong operating and capital support from the State of Maryland, its prominent role as a comprehensive urban public research university and historically Black university, and its favorable enrollment and research momentum. Together, those strengths support Morgan’s ability to advance its mission while managing the financial demands that accompany rapid growth.

“Receiving an A1 rating is an independent vote of confidence in Morgan’s direction and in our ability to manage growth with purpose,” said David K. Wilson, president of Morgan State University. “For the State of Maryland, our federal partners, donors and other investors in Morgan’s future, it signals that their support is being matched by disciplined leadership, strong demand and measurable progress. That confidence gives us greater capacity to build the research infrastructure, learning environments and student experiences our mission requires — and to do so with a clear view of the generations we are preparing to serve.”

Morgan’s market position has strengthened considerably over the years. Full-time-equivalent enrollment reached 10,991 in fall 2025, up 39% since 2021 and 7.5% from the prior year. Moody’s also cited 17% year-over-year growth in graduate enrollment as an advantage in the University’s pursuit of a Carnegie very high research (R1) classification. The agency described Morgan’s brand and strategic position as very good, supported by broad academic programs, strong ties to Maryland and an expanding research enterprise.

That growth is being supported by an increasingly diverse revenue base and substantial public investment. Morgan recorded $449 million in operating revenue in fiscal 2025, a 13.5% increase from the previous year. State appropriations represented 46% of revenue, helping fund institutional priorities and reducing reliance on student charges. In its analysis, Moody’s cited research revenue as not being materially affected by federal grant cuts and expected to remain stable.

Financial Strength Supporting Mission

Morgan also improved its internal cash generation in fiscal 2025. Its earnings before interest, depreciation and amortization margin rose to approximately 9%, and annual debt service coverage reached 6.0 times — a level Moody’s characterized as strong. Total cash and investments grew to $330 million. The stable outlook assumes operating performance remains at least steady, with margins in the high single digits, continued state support for capital needs and financial reserves growing at least in line with peers.

The rating has practical value for the University community. Strong credit quality can support more favorable market access and borrowing costs when financing is needed, leaving more institutional capacity for academic programs, student success, faculty research and facilities.

“Sound fiscal stewardship is not a separate exercise from Morgan’s strategic operations; it is what allows the strategy to endure,” said E. David LaChina, executive vice president for Finance and Administration and chief financial officer at Morgan. “We are aligning resources with enrollment, research and capital priorities; maintaining discipline as costs grow; and building financial capacity over time. Moody’s affirmation recognizes real strengths in that work, while also reinforcing our focus on balanced operations, liquidity and prudent management of future obligations.”

Moody’s evaluation also reflects the scale of Morgan’s transformation. State-supported capital investment has helped support the University’s ongoing and planned project priorities. Moody’s noted Morgan’s new science center, student housing partnerships and preliminary plans for the University’s acquired 59-acre Lake Clifton site in Baltimore among the investments associated with its long-term campus vision.

The agency identified important pressures that Morgan will continue to manage, such as liquidity, operating margins and public-private housing obligations. However, the $63 million unrestricted gift received from philanthropist MacKenzie Scott in fiscal year 2026 strengthened the University’s resource base.

The A1 affirmation complements the University’s most recent A+ issuer credit rating from S&P Global Ratings. As higher education institutions nationwide contend with rising costs, intense competition and uncertainty in public funding and research support, Morgan's affirmed Moody’s rating underscores the durable strengths behind its continued momentum: demand for a Morgan education, a growing research profile, robust partnership with the State of Maryland and a commitment to responsible financial management.

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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Larry Jones, or Cheryl Stewart, for Morgan State University PR
443-885-3022

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