Penn State Retains AA Rating from Standard and Poor's
Credit-rating agency Standard and Poor's has upheld Penn State's core AA long-term rating and retains an overall "stable" outlook for the institution, the university announced Monday.
"Penn State continues to remain well-positioned in its market despite the challenges they have faced during the past eight months," an S&P report reads, according to Penn State.
Those challenges include child-sexual-abuse allegations against Jerry Sandusky and related cover-up claims; a cut of nearly 20 percent in state funding; and wholesale changes in organizational leadership, the university noted.
Specifically, in assessing Penn State's fiscal stability, S&P mentioned the university's fundraising strength, stable enrollment and revenue diversity, among other elements. Noted challenges facing Penn State include ongoing pressure on state appropriations, "limited tuition flexibility" and capital plans that reach toward $160 million, the university reported.
A news release from Penn State is posted here. Last month, the university announced it has been removed from the "Watchlist for Possible Downgrade" maintained by Moody's Investors Service. Moody's still lists Penn State's outlook as negative, though.