Belmont University, based in Tennessee, received a negative outlook from S&P Global Ratings citing compressed operating margins.
S&P also affirmed the school's A rating.
The rating action affects the school's Health & Educational Facilities Board of Nashville and Davidson Series 2021 and Series 2023 educational facilities revenue bonds and its issuer credit rating.
For credit positives, S&P said the university had stable enrollment following several years of growth, a geographically diverse student body, and solid retention rates. S&P also mentioned a conservative endowment draw and a well-maintained average age of plan. It expects modest-to-moderate full accrual surpluses over the next two years, following a deficit in fiscal 2025.
However, S&P said the school has experienced compressed operating margins in recent years. The school is highly dependent on student-generated revenues compared to other schools at the rating. The school has weak selectivity for the rating category, the rating agency said.
The Christian university had $316 million in debt outstanding as of May 31, according to S&P.
Belmont University, located in Nashville, had 8,529 full time equivalent students in fall 2025.
"Belmont remains in strong financial health as affirmed by S&P's 'A' long-term and underlying rating," the school said in a statement to The Bond Buyer. "The outlook has changed due to recent investments in campus footprint based on growing enrollment and campus needs. We are actively managing these conditions through disciplined financial planning and long‑term stewardship. Like many institutions across higher education, we are operating in a dynamic and volatile market environment that includes the convergence of many pressures. Because of these pressures, the U.S. Higher Education sector overall has received a cautious to negative outlook."
S&P's rating action takes place as
