S&P Global Upgrades Fayetteville State University’s Credit Rating
FAYETTEVILLE, N.C. – On September 4, S&P Global Ratings announced an upgrade to Fayetteville State University’s (FSU) issuer credit rating, moving it from A- to A. This decision is attributed to the institution’s better financial resources, an uptick in enrollment, and robust backing from the state. The outlook for FSU is deemed “stable.”
This latest upgrade marks a continued positive trend in FSU’s credit profile, which has seen improvements over recent years. In 2021, the university held a credit rating of BBB+ with a “negative” outlook, which was later revised to “stable” in May of that year. The rating progressed to A- in December 2022 and remained affirmed in 2024.
University Leaders Comment on Rating Improvement
Chancellor Darrell T. Allison expressed that this rating reflects the university’s ongoing strength and progress. He noted, “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.”
Additionally, S&P upgraded its long-term rating on FSU’s series 2023 general revenue refunding bonds from A- to A, and the rating for the university’s series 2021 limited obligation bonds was raised from BBB+ to A-.
Impact of the Upgrade on Financial Operations
Kenny Spayd, the chief financial officer at FSU, remarked that this upgrade substantiates the university’s increasing financial strength and prudent management. He emphasized that the rating enhancement improves FSU’s position in financial markets, allowing for responsible investments in students, academic programs, and facilities.
Credit ratings play a crucial role in determining financing conditions for institutions, making a strong credit standing vital as FSU plans for future capital investments. S&P evaluated FSU’s financial risk profile as “very strong” and its enterprise risk profile as “strong.”
Enrollment Growth and Strategic Initiatives
According to S&P, several factors contributing to this upgrade align with FSU’s “Ready for Tomorrow: 2022-2027 Strategic Plan.” The agency noted that the university’s targeted initiatives have successfully boosted enrollment, particularly among transfer students, veterans, and adult learners returning to finish their degrees.
FSU has reported a 17.4% increase in full-time equivalent enrollment from fall 2022 to fall 2025, totaling 6,705 students. Undergraduate enrollment surged by 20.3%, rising from 4,903 to 5,897 students during the same timeframe.
Financial Growth and Support from the State
Demand from prospective students has also escalated, with applications from first-year students reaching 6,828 in fall 2025, marking a 65.9% increase since fall 2022. Additionally, the number of incoming transfer students reached a record high of 1,150 in fall 2025, aided by the NC Promise program and enhanced recruitment efforts.
FSU’s financial resources have seen significant growth, with the university reporting $117.8 million in cash and investments for fiscal 2025, a 34.8% increase from $87.4 million in the previous year. Strong operational performance and favorable market conditions contributed to this increase, with the university recording a $10.7 million operating surplus in fiscal 2025.
State funding has also reached new heights, with appropriations totaling $92 million in fiscal 2025, up 6.7% from the prior year, and projected to rise to $106.1 million for fiscal 2026, a 15.3% increase. FSU’s funding levels are among the highest for public universities, with expectations for continued support through the NC Promise program.
S&P’s stable outlook indicates an expectation that FSU will maintain its enrollment and demand growth while preserving healthy operational performance, as well as sustaining its current financial resources and ongoing strong state support.
Source: Fayetteville State University
