Mercy College's 'A' Credit Rating Reaffirmed by Standard & Poor's

Mercy College seal

Mercy College announced today that it has once again received an ‘A’ credit rating from Standard & Poor’s (S&P) rating services for higher education. S&P voted to affirm the ‘A’ rating after reviewing Mercy’s most recent financial and enrollment data, which proved a stable outlook for the College as well as its capacity and willingness to meet all financial commitments.

The rating report stated that Mercy’s healthy operating margins, limited endowment draws, low and stable discount rate and strong management team were all positive factors in maintaining the ‘A’ rating. These factors have allowed the College to continue to fulfill its mission of providing motivated students the opportunity to obtain a college degree and transform their lives through a high-quality, affordable higher education.

“Standard & Poor’s rating confirms Mercy College’s commitment to maintaining strong fiscal governance and judicious budget management,” Joseph Gantz, Chairman of the Mercy College Board of Trustees said. “As higher education institutions continue to navigate pandemic challenges, Mercy leadership under President Tim Hall remains diligent in operating a disciplined budget approach to anticipate uncertainty, meet financial obligations and achieve teaching and learning goals, all while staying focused on Mercy’s mission.”

Mercy is among the 75% of overall rated colleges and universities that maintain a stable outlook. According to S&P’s analysis of U.S. Colleges and Universities 2021 ratings, pandemic-related pressures in higher education will continue to negatively affect schools that have demonstrated past operational challenges. Mercy College has continued to show financial stability throughout the pandemic. While approximately 44 percent of private university issuers are rated ‘BBB+’ or below entering 2022, Mercy College falls within the ‘A’ rating category.

“Mercy is committed to maintaining financial practices that ensure students, faculty and staff have the resources to provide and benefit from a high-quality college education,” President Tim Hall said. “The Standard & Poor ‘A’ rating demonstrates the Board of Trustees’ commitment to supporting and sustaining Mercy’s mission and helping students achieve their goals of a college degree.”

S&P has affirmed an ‘A’ rating for Mercy College since 2012. The rating reflects the view that over the next two years the College will produce healthy financial operations, realize enrollment goals, ensure student success and keep a Mercy education affordable for students.