Moody’s Ratings downgraded Brown University’s credit outlook to negative, pointing to “already thin operating performance” that could persist for several years. The agency highlighted Brown’s high debt burden and large lump-sum payments due in the future, which could limit borrowing capacity unless Brown improves operating performance. Moody’s reaffirmed Brown’s high credit rating but warned that an inability to improve operating margins by fiscal 2028 could trigger downward rating pressure. Brown’s performance includes an operating surplus of roughly $2.6 million on $1.5 billion in revenue in fiscal 2025, improving from a prior year operating deficit. The downgrade underscores constraints facing even high-demand private universities, as rising expenses continue to challenge tuition and other revenue streams. Moody’s specifically noted budget adjustments tied to turbulent federal research funding as part of the broader operating context.