Moody’s May Downgrade Penn State’s Credit Rating

Moody’s Investors Service said on Tuesday that it had again placed Pennsylvania State University’s credit rating “on review” for a possible downgrade, citing the recent fallout from a damning report on the university’s child-sex-abuse scandal and harsh sanctions levied by the National Collegiate Athletic Association. The agency now rates Penn State’s $1-billion in debt at Aa1, the second-highest of 10 categories. The review, which is likely to conclude in the next 90 days, will focus on the university’s leadership and management, “including the implementation of the recommendations of the Freeh report, as well as other changes in board and management structure and process,” the agency said.