S&P ACKNOWLEDGES LIU’S STRONG FINANCIAL POSITION WITH A- RATING

tandard & Poor’s Global Ratings (S&P) improved Long Island University’s credit rating to an A- rating, the highest in the University’s history. In the report issued in February 2023, S&P cited stable enrollment, very solid operating performance, and a low debt burden as contributors to the elevated performance.

The credit rating increase was further driven by the University’s ability to develop and effectively implement mission-aligned strategies. S&P’s formal evaluation rubric includes non-financial criteria including: the strength of academic programs, student achievement, institutional quality, college affordability, research designation and other qualitative measures. The agency’s latest enterprise profile for LIU includes new academic programs, research, innovative partnerships, recruiting strategies, and competitive tuition among the University’s strengths and drivers of its market position and demand.

“In 2020, [LIU] implemented a new strategic plan that will guide the university through 2030. The plan includes several demand metric targets, specific targets related to the quality of education and research at individual schools, financial targets, and significant fundraising goals,” S&P’s Credit Opinion noted. “The university successfully achieved several goals it set out in the 2020 strategic plan, including surpassing its $200 million endowment goal early in 2018. LIU also achieved its goal to achieve R2 Carnegie classification for its research activity in 2022, with continued growth in research activity expected over the next several years.”

Committed to maintaining high level programming at sustainable costs, the University has held 2% tuition rate increase for 10 consecutive years during a period when national and regional rate increases have been more than double that average. For the 2022-23 year, LIU’s full-time, undergraduate tuition is more affordable than Fordham, Hofstra, St. John’s, and Adelphi by margins of 44%, 33%, 17%, and 8%, respectively.

“The University’s credit rating is largely driven by our ability to establish a well-articulated strategic plan and demonstrate accomplishments toward institutional goals and priorities,” Vice President for Finance Chris Fevola wrote to members of the LIU community. “Fiscal 2023 is demonstrating solid projected operating performance and net asset growth as student achievement improves, facilities are expanded and modernized, and the University implements several strategic initiatives.”

Fevola pointed to academic and professional excellence across the board as a decisive factor in the ongoing financial success, writing: “The state of LIU’s exceptional fiscal health and agility is not possible without our dedicated faculty, researchers, and staff who are elevating LIU as a national teaching and research university.”