SOUTH ORANGE, NJ — Prior to the pandemic, Seton Hall moved to secure a bond issuance to fund strategic capital projects. As the pandemic came ashore, the University emerged as an early leader in responding to and advancing through the health crises and is at the forefront of efforts to implement cost-saving strategies.

Upon reviewing the University’s performance and plans, Moody’s noted:

• Seton Hall is ahead of the curve in addressing the impact of COVID-19.

• Seton Hall operates with a business-like sense that is somewhat uncommon, which allowed the University to be in a first-mover position to address the latest challenges with COVID-19.

• Based on Moody’s outreach to more than 500 institutions, Seton Hall is at the forefront of efforts to implement cost-saving options.

• The University benefits from a strong management team.

In March of this year, Moody’s lowered its outlook for the higher education sector from stable to negative, citing unprecedented volatility caused by the health and economic effects of the coronavirus.

Today, Moody’s downgraded its rating one notch for Seton Hall from A3 (stable) to Baa1 (stable). According to Stephen Graham, Seton Hall’s Vice President for Finance and CFO, the University “fully expected a downgrade related to the debt issuance and concurs with Moody’s assessment of the University’s strategy and response to COVID-19.”

According to Moody’s, this downgrade was solely in response to the University’s planned issuance of 2020 Series C Revenue Bonds (Tax-Exempt) and 2020 Series D Revenue Bonds (Federally Taxable). The planned new debt issuance for these bonds totals approximately $109 million.

Graham noted, “our new rating and stable outlook continue to reflect the University’s secure financial position. Based on current market conditions, this rating will have minimal impact on the pricing of bonds issued to Seton Hall.”

Seton Hall’s issuance of the new revenue bonds reflects the University’s commitment to mid and long-term strategic planning, goals and priorities.

ABOUT SETON HALL UNIVERSITY
One of the country’s leading Catholic universities, Seton Hall has been showing the world what great minds can do since 1856. Home to nearly 10,000 undergraduate and graduate students and offering more than 90 rigorous academic programs, Seton Hall’s academic excellence has been singled out for distinction by The Princeton Review, U.S. News & World Report and Bloomberg Businessweek.

Seton Hall embraces students of all religions and prepares them to be exemplary servant leaders and global citizens. In recent years, the University has achieved extraordinary success. Since 2009, it has seen record-breaking undergraduate enrollment growth and an impressive 110-point increase in the average SAT scores of incoming freshmen. In the past decade, Seton Hall students and alumni have received more than 30 Fulbright Scholarships as well as other prestigious academic honors, including Boren Awards, Pickering Fellowships, Udall Scholarships and a Rhodes Scholarship. The University is also proud to be among the most diverse national Catholic universities in the country.

During the past five years, the University has invested more than $165 million in new campus buildings and renovations. And in 2015, Seton Hall launched a School of Medicine as well as a College of Communication and the Arts. The University’s beautiful main campus in suburban South Orange, N.J. is only 14 miles from New York City — offering students a wealth of employment, internship, cultural and entertainment opportunities. Seton Hall’s nationally recognized School of Law is located prominently in downtown Newark. The University’s Interprofessional Health Sciences (IHS) campus in Clifton and Nutley, N.J. opened in the summer of 2018. The IHS campus houses the University’s College of Nursing, School of Health and Medical Sciences and the Hackensack Meridian School of Medicine at Seton Hall University.

For more information, visit www.shu.edu.