Moody's Considers Credit Downgrade for Penn State

Friday, 11 Nov 2011 05:58 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

BOSTON - The child sex abuse scandal at Penn State University reached Wall Street Friday when the ratings agency Moody's warned of a possible credit downgrade for the prestigious university.

"Over the next several months, Moody's will evaluate the potential scope of reputational and financial risk arising from these events," Dennis Gephart, a senior analyst at Moody's, said in a release.

Penn State's debt is currently rated Aa1, reflecting very strong student demand and other credit strengths at Pennsylvania's flagship university.

Penn State has "approximately $1 billion of rated debt," Moody's said.

Moody's cited the school's strong academic brand, which it said has "improved substantially" over the past few decades, and its ability to draw out-of-state students who pay higher tuition rates.

Graham Spanier, who was asked to step down as president, is recognized for having lifted the university's academic reputation during his 16 years as its head.

Moody's said it is watching a number of factors that could come out of the scandal centered on Jerry Sandusky, the former assistant football coach who has been charged as a serial pedophile.

These include potential lawsuits and settlements, weaker student demand, declines in philanthropic giving, and significant management or governance changes.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Plane Crash Kills Dad Walking on Beach With Daughter

Sunday, 27 Jul 2014 17:42 PM

Authorities say a father was killed and his daughter seriously injured while walking on the sand whe n a small plane cra . . .

Family of 5 Shot Dead in Maine, Gun Recovered

Sunday, 27 Jul 2014 20:54 PM

A family of five, including three children ranging in age from 4 to 12 years old, were found shot to death Sunday inside . . .

California Lightning Hits 14; 2 Critically Injured

Sunday, 27 Jul 2014 20:07 PM

Lightning struck 14 people, leaving two critically injured, as rare summer thunderstorms swept through Southern Californ . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved