Loyola University New Orleans outlook lowered to negative by Moody's

Moody's Ratings lowered its outlook to negative from stable on Loyola University New Orleans, citing an expected operating deficit.

Moody's affirmed the university's Baa1 issuer and debt ratings.

Loyola's management expects an operating deficit and weaker debt service coverage in the current fiscal year. Moody's said these could persist unless management is able to develop stronger revenue growth that outpaces expenses. The ratings agency pointed to these factors to explain the lowered outlook.

The school has solid wealth and available liquidity, supported by ongoing donor support, Moody's said.

"The university's identity as a Jesuit institution and its location in New Orleans contribute to its good strategic positioning, while recent investments in healthcare-related academic programs and ongoing program reviews reflect responsiveness to market demand and strategic management of its offerings," Moody's said.

While the school had stable enrollment in fall 2025, housing occupancy remains low. Housing revenue growth is below the school's projections even as its overall annual debt service payments increase.

As of July 31, 2024, Loyola had $278 million in debt outstanding.

S&P Global Ratings rates the school's debt BBB with a stable outlook. S&P raised the outlook to stable from negative last week, citing improved enrollment figures and maintained financial balances.

Loyola didn't immediately respond to a request for a comment.

The school has no connection to the three other universities in the nation with Loyola in their names.

Moody's action takes place as some higher education institutions seek ways to offset pressures from the Trump administration.