Fitch Recognizes Progress
ANDERSON, Ind., Nov. 13, 2026 /PRNewswire/ — Anderson University (AU) is reporting significant progress in strengthening its financial position following the completion of its audited financial statements for 2026.
Fitch Ratings recognized the successful first-year execution of the university’s turnaround plan, citing the following improvements under President Scott Moats:
- AU eliminated its structural operating deficit ahead of schedule, restored balanced cash flows in fiscal 2026, reduced operating expenses by 20%.
- Improved its debt service coverage ratio to 1.4x, exceeding its required bond covenant.
- Fitch also recognized improvements in the university’s operating performance, revising its Operating Risk assessment upward from ‘bb’ to ‘bbb’.
View the complete rating action commentary from Fitch
While important work remains, these developments demonstrate meaningful progress in the university’s efforts to build a more sustainable financial future.
According to the Fitch report, “Successful first-year execution of AU’s turnaround plan restored balanced cash flows in fiscal 2026 and are forecast for fiscal 2027.” AU achieved “…significant, ahead-of-schedule elimination of its structural deficit under new leadership.”
Fitch’s assessment of AU’s operating performance is distinct from the agency’s formal credit rating action and does not represent an increase in the University’s credit rating or a prediction of a future rating decision.
Moats said the past year marked a significant change in the University’s financial position.
“The turnaround is working and our financial discipline is achieving measurable results,” Moats said.
He recounted that one of AU’s financial advisors and lenders recently emailed him, describing the turnaround as “rare.” Moats said AU balanced its budget and ended the year with a surplus. He expressed gratitude for the progress, saying, “But for the grace of God.”
“We balanced the budget. We had a surplus. We ended up with debt covenant ratio that was phenomenal. We ended up with a U.S. Department of Education score that was greater. Days cash on hand and debt service coverage ratio both exceeded bond holders’ requirements. We also moved our Composite Financial Index score. In summary, that means that we moved from struggling to stable. And to me, that was exciting,” Moats added.
“AU is here. We are going to make it. Not only are we going to make it, but we’re going to thrive. And God has blessed Anderson, and we’re excited because our future is very bright,” Moats said. “We have seen a transformation that I have not experienced in 36 years.”
A plan executed with discipline
University leaders describe the improvement as the result of focused execution and mission-driven stewardship. AU’s Faithful Campus Framework emphasizes faith as the University’s foundation, clear communication, mission-driven stewardship, partnerships and collaboration, a sustainable university culture, and student recruitment and retention.
“Many people can develop a plan, but very few can execute it. Last year, we saw the execution of a plan, and God blessed it,” Moats said.
Moats emphasized that the University still has challenges and work to do, particularly in budgeting and enrollment. AU is focused on sustaining progress through disciplined management and careful use of its resources and gifts from donors.
“Gifts from donors are primarily used to fund scholarships,” said Brent Baker, vice president of Advancement at AU. “So many of our alumni were able to attend Anderson University because of scholarships. So, I would ask you to prayerfully consider being a part of what we’re doing now by giving to today’s students.”
Financial progress in service to students and mission
“Our mission is to educate for a life of faith and service,” Moats said. “AU’s financial progress creates a stronger foundation for that mission and for the University’s distinctive integration of faith and education. AU seeks to prepare graduates to carry the impact of their education into their workplaces, families, churches and communities.”
Anderson University’s priorities include pursuing enrollment growth, concentrating recruitment efforts in Madison County and the surrounding region, continuing to elevate its relationship with the Church of God, and strengthening partnerships with the Anderson community. AU is also committed to stewarding donor generosity and institutional resources responsibly.
AU is grateful to the trustees, faculty, staff, students, alumni, donors, Church of God partners and community friends who have contributed to the University’s momentum. The University will continue to communicate its progress accurately and remain focused on the work ahead.
For more financial information see: Emma (Electronic Municipal Market Access).
About Anderson University
Anderson University educates students for lives of faith and service, offering more than 50 undergraduate majors, 30 three-year degrees, 18 NCAA Division III intercollegiate sports, alongside adult, graduate, and online programs. The private, liberal arts institution is fully accredited and recognized for excellence in business, computer science, cybersecurity, engineering, music, nursing, psychology, social work, and teacher education programs. Established in 1917 in Anderson, Indiana, by the Church of God, the university remains committed to its Christ-centered mission.
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Larry Costello, (847) 337-9252, 426940@email4pr.com
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SOURCE Anderson University – Indiana
