Jerry Sandusky Scandal Plays Factor in Credit Downgrade
Updated at 5:22 p.m.
Penn State issued a statement Tuesday afternoon regarding the credit downgrade.
"Penn State University’s credit rating through Standard & Poor’s remains AA. S&P noted the University’s strong performance track record indicating that “Penn State’s current credit metrics remain consistent within the rating category.” As such, the University remains among the top 40 public rated institutions in the country and maintains the same rating as the Commonwealth of Pennsylvania. The University’s S&P outlook will be assessed again within the next two years."
Earlier at 10:22 a.m.
Penn State had its credit outlook downgraded to negative by Standard and Poor’s because of financial liability in connection with the Jerry Sandusky child sex abuse scandal, Bloomberg reported Monday.
The move follows that by Moody’s Investors Service, which in July said that the university's Aa1 credit level — the second-highest it offers — on the school may be cut.