Moody's Investors Service has revised the outlook on Fairfield University to positive from stable, and has affirmed the A3 ratings applied to approximately $255 million of revenue bonds issued through the Connecticut Health and Educational Facilities Authority.

Moody's reported, “The revision in the outlook to positive reflects the strengthening in student demand as evidenced by growth in enrollment and strong gains in net tuition revenue, despite a highly competitive market. That momentum along with prudent fiscal management, and above average donor support, has bolstered the university's flexible financial resources.”

The A3 rating reflects healthy growth in revenue as net tuition has risen, producing consistently strong surplus operations including operating margins averaging 7.2% over the three years through fiscal 2019, and operating cash flow margins generally more than 20%. The rating also incorporates Fairfield's relatively high leverage relative to operating revenue.

The positive outlook reflects the expectation that Fairfield University will continue to generate strong surplus operations supported by growth in net tuition revenue, maintain sound liquidity, and will not issue material additional debt.

Moody's Investors Service is a leading global provider of credit ratings, research and risk analysis. The principal methodology used in these ratings was Higher Education published in May 2019. For more information see the Rating Methodologies page on www.moodys.com.