Moody’s upgrades NEOMED’s credit rating

Moody's upgrades NEOMED's credit rating

Moody's Investors Service has upgraded the credit rating of Northeast Ohio Medical University (NEOMED) from Baa1 (positive) to A3 (stable).

The upgrade, outlined in the University's latest credit report, reflects NEOMED's strong strategic positioning, growing financial reserves and effective management of multiple strategic initiatives. The report highlights how NEOMED has successfully translated new initiatives into improved operating revenue, stronger margins and increased debt service coverage.

A cornerstone of this progress has been the University's implementation of zero-based budgeting and Lean Six Sigma principles over the past five years, aligning resources with its strategic plan. This disciplined financial approach has ensured that resources are directed where they are needed most, strengthening the institution's overall fiscal foundation.

"NEOMED has become a benchmark institution of higher education, experiencing unprecedented expansion, enrollment growth, community impact and financial strength," said NEOMED President John Langell, M.D., Ph.D., M.P.H., M.B.A. "The latest upgrade from Moody's is the result of an intentional focus on disciplined financial management paired with operational excellence, ensuring NEOMED is carefully positioned for a thriving and sustainable future. Achieving a strong fiscal position is a foundational element to being able to deliver high-quality educational and research opportunities."

This marks the second Moody's bond rating upgrade in three years, an especially notable achievement at a time when many higher education institutions are navigating financial and enrollment challenges.

"Our long-term strategy is working well for the benefit of our students, our employees and the communities we serve," Dr. Langell added. "NEOMED graduates will increasingly have a powerful impact on improving the health of Ohioans."