VALPARAISO – As Valparaiso University experiences positive momentum, credit rating agency Moody’s has updated the University’s rating and outlook.

Moody’s is a global financial services company best known for credit ratings, risk analysis, and economic research. A “Moody’s Rating” is an independent assessment of the creditworthiness of a borrower, corporation, or government, ranking long-term debt risk from Aaa (highest quality) to C (lowest/default). Provided by Moody’s Ratings as part of the overall Moody’s Corporation, these grades help investors measure the likelihood that a borrower will repay their financial obligations.

Moody’s tracks and rates around 500 higher education institutions, and as a whole, Moody’s holds a negative outlook for the higher education sector throughout North America. After dropping the higher education sector from stable to negative in March of 2025, Moody’s has maintained a negative stance about colleges and universities through 2026. The rating agency cites a widening gap where operating expenses are outpacing revenue growth, severe federal policy headwinds, and looming demographic enrollment cliffs. As a result of Moody’s general negative outlook on higher education, several universities have received a downgrade in recent months, including Columbia University, Brown University, American University, and numerous others.

In line with other recent decisions related to higher education, Moody’s has updated the credit rating of Valparaiso University from Ba1 with a negative outlook to Ba3 with a stable outlook as of July 29, 2026. Whereas the Moody’s ranking largely reflects financial results from the past, the outlook represents expectations for the future, and Valparaiso University has announced positive momentum that is strengthening the present and building toward the future. For example:

  • Enrollment Growth: Applications have increased by more than 20% and the incoming first-year undergraduate class is tracking 10% ahead of last year’s final enrollment. Valparaiso University anticipates its first year-over-year new students enrollment increase in ten years.
  • Fundraising Growth: Total cash received across all University allocations sits at $16.5 million, representing a 77% increase over the previous fiscal year. The Valpo Fund has raised $4.04 million, and generous support through realized bequests and transformational gifts continues to strengthen the University’s ability to invest in students, programs, and strategic priorities.
  • Student Success Growth: Valpo continues to prepare students for lives of leadership and service, as evidenced by a remarkable 98.1% graduate outcomes rate (12% higher than the national average), indicating that recent graduates are either employed, serving in the military, or enrolled in a graduate program within months of graduating. Furthermore, 88% of Valpo graduates complete their degrees in four years or less, which is double the national average of 44%.

Loren Chandler, who was recently appointed as senior vice president for finance and administration and chief financial officer, expressed confidence in the financial momentum of Valparaiso University. “Moody’s rating is primarily a tool for bond investors, and it is not an evaluation of our academic quality, accreditation, student outcomes, mission and identity, faculty and staff, or the value and values of a Valparaiso University education. As a distinctive community of teaching and learning fully dedicated to excellence and built on the Lutheran tradition of scholarship, freedom, and faith, we will continue to prepare students to lead and serve in both church and society, as we fully believe the world needs more Valpo graduates.”

Valparaiso University will evaluate the recent action taken by Moody’s and will continue to partner with the agency to address identified challenges and best position the campus community to fulfill its mission into the future.

About Valparaiso University
Valparaiso University (Valpo) builds lives for good. As a community dedicated to excellence and rooted in the Lutheran tradition of scholarship, freedom, and faith, we prepare students to lead and serve in both church and society. Located in the economically and culturally growing region of Northwest Indiana, placed within the dynamic Chicagoland area, and impacting the nation and world, Valparaiso University offers its students far more than a path toward their next job, as we offer a trajectory toward an extraordinary life.