S&P Global Ratings Raises Fayetteville State University Credit Rating to ‘A’ on Improved Enrollment

FAYETTEVILLE, N.C. –  S&P Global Ratings raised Fayetteville State University’s issuer credit rating from A- to A as of Sept. 4. The agency cited the university’s increasing financial resources, growing enrollment, and strong state support. The outlook is “stable.”

The upgrade continues FSU’s credit profile improvement over the past several years. FSU began 2021 with an issuer credit rating of BBB+ and a "negative" outlook. S&P revised the outlook to "stable" in May 2021 while affirming the BBB+ rating. The university was then upgraded to A- in December 2022 and affirmed that rating in 2024.

“This rating reflects the ongoing strength and progress of Fayetteville State University,” said Chancellor Darrell T. Allison. “At Fayetteville State University, we have not only been intentional about being one of the most affordable institutions in the nation and ensuring that our academic programs are better aligned with workforce needs, but we have also been just as intentional in building a stronger financial institution that serves more students and invests in their success. Therefore, this upgrade is a meaningful indicator of our momentum and reinforces our responsibility to maintain this progress well into the future.”

S&P also upgraded its long-term rating on FSU’s series 2023 general revenue refunding bonds from A- to A. Additionally, the underlying rating on the university’s series 2021 limited obligation bonds, issued for Fayetteville State University Housing LLC, was upgraded from BBB+ to A-.

“This upgrade independently validates FSU’s growing financial strength and sound stewardship,” said Kenny Spayd, chief financial officer. “It strengthens our standing in financial markets and enhances our ability to invest responsibly in our students, academic programs and facilities.”

Credit ratings influence financing terms when institutions borrow, making a stronger credit profile important as FSU considers future capital investments.

The agency assessed FSU’s financial risk profile as “very strong” and its enterprise risk profile as “strong.”

Progress Driven by Ready for Tomorrow: 2022-2027 Strategic Plan

Several outcomes S&P highlighted reflect priorities in Ready for Tomorrow, FSU’s 2022–2027 Strategic Plan. The agency attributed enrollment growth to the university’s targeted initiatives and noted FSU’s efforts to attract transfer students, veterans, and adults returning to complete degrees.

• Enrollment has grown. Full-time equivalent enrollment increased 17.4% from fall 2022 to fall 2025, reaching 6,705 students. Undergraduate enrollment rose 20.3% during the same period, from 4,903 to 5,897 students.
• Student demand has expanded. Applications from prospective first-year students reached 6,828 in fall 2025, up 65.9% from fall 2022. Incoming transfer students hit a university record of 1,150 in fall 2025. These gains benefited from NC Promise and university recruitment initiatives.
• Financial resources have strengthened. FSU reported $117.8 million in cash and investments in fiscal 2025, up 34.8% from $87.4 million in fiscal 2024. Positive market conditions and strong operating performance drove this growth. The university recorded a $10.7 million operating surplus in fiscal 2025.
• Fundraising has reached new heights. State appropriations totaled $92 million in fiscal 2025, up 6.7% from the previous year. For fiscal 2026, FSU received $106.1 million, a 15.3% increase. FSU's appropriations are higher than most public universities, with expectations that this support will continue through participation in NC Promise.

S&P’s stable outlook reflects expectations that FSU will continue to improve enrollment and demand while maintaining healthy operating performance. The agency also anticipates that the university will sustain financial resources near current levels and continue to receive strong state support.