Moody’s downgraded Brown University’s credit outlook to negative, citing “already thin operating performance” and the strain that high debt and future lump-sum obligations could place on Brown’s borrowing capacity. Moody’s reaffirmed Brown’s high credit rating but warned that inability to improve margins by fiscal 2028 could bring downward rating pressure. The ratings agency highlighted Brown’s liabilities and its future cash needs, including a $500 million term loan taken out in July 2025. Moody’s framed the outlook as hinging on leadership’s ability to lift operating performance while managing rising costs and turbulent research-funding dynamics. The move adds to ongoing pressure on the private nonprofit sector, where operating margins have tightened as institutions absorb expense growth faster than tuition revenue.