Rootstown, Ohio-based Northeast Ohio Medical University has earned a credit upgrade from Moody’s Investors Service, moving from “Baa1 to “A3”.
The upgrade, announced in NEOMED’s latest credit report, reflects the university’s strengthened financial reserves, improved operating revenue and disciplined management of strategic initiatives. Moody’s noted NEOMED’s ability to translate new programs into stronger margins and higher debt service coverage.
A major factor in the institution’s progress has been its implementation of zero-based budgeting and Lean Six Sigma principles over the past five years, aligning financial resources with the university’s strategic plan.
“NEOMED has become a benchmark institution of higher education, experiencing unprecedented expansion, enrollment growth, community impact and financial strength,” NEOMED President John Langell, MD, PhD, said in a Sept. 25 news release shared with Becker’s. “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.”
This marks NEOMED’s second Moody’s bond rating upgrade in three years.
“Our long-term strategy is working well for the benefit of our students, our employees and the communities we serve,” Dr. Langell said. “NEOMED graduates will increasingly have a powerful impact on improving the health of Ohioans.”
