Webster University’s Bond Outlook Improves

Moody’s, a global financial services firm specializing in credit ratings and loan risk, upgraded Webster University’s financial outlook to stable, it was announced today. Reasons for the upgrade, according to Moody’s, include Webster's steps to reduce debt, restructure the administration, improve enrollment, and implement better cost controls.

Moody's is the third independent evaluator to affirm Webster's transformation in the last 60 days.  Global auditing firm Forvis Mazars audited Webster's fiscal year 2025 financials and found that the University had finished the year cash-flow positive for the first time in a decade.  Additionally, the Higher Learning Commission recently completed a review of Webster's international campuses and found that the University met the highest standard for quality academic programs.

"Webster has transformed nearly every aspect of our operations through our Kairos Strategic Plan and is now on solid financial footing.  Moody's conservative approach to their assessment highlights how far we've come in a short period of time, and we are just beginning," Webster University President Tim Keane said. 

Reasons for the upgrade, according to Moody’s, include Webster refinancing $19.6 million of its 2015 bonds, extending its credit through 2028, sustaining enrollment growth, eliminating all financial covenants, completing the 2025 fiscal year cash-flow positive, and launching a “multifaceted strategic plan that has yielded short-term incremental improvements.” That multi-faceted plan is the Kairos Strategic Planning Initiative, where administration met with students, faculty and staff on numerous occasions to analyze Webster’s current environment and explore ways to update processes, reduce costs and refocus Webster’s operations on its core mission of providing education services.

Among the most significant changes that resulted from the Kairos plan were the reduction of the number of leadership positions; the combination of several departments to improve efficiencies; restructuring departments so that the workflows and departmental duties reflect best practices in the industry; and standardizing academic pay scales to match those found in the industry. More changes are underway. Currently, the University is reviewing all academic and non-academic programs to see where efficiencies can be introduced, costs lowered or new programs introduced that could spur revenue growth. The University also is appraising its portfolio of non-academic properties to determine which ones can be leveraged or sold to improve Webster’s finances.

Webster’s financial turnaround is extraordinary and completely contrary to the national trend of most institutions of higher education continuing to see lower bond ratings and instability in their finances. 

The full statement from Moody’s can be found online.