Moody’s investor rating service said yesterday that it may have to cut its credit rating on Penn State University as the school deals with the fallout from the Jerry Sandusky child sexual-abuse case, the Joe Paterno cover-up and the NCAA and Big Ten sanctions handed down on the school’s college football team.
From Penn Live:
The agency has an ‘Aa1′ rating on Pennsylvania State University’s credit. That is its second-highest possible rating. The firm said a recent report by former FBI Director Louis Freeh and sanctions levied by the NCAA could hurt student enrollment and fundraising for the university, and the school also faces uncertainty in the form of ongoing federal and state investigations.
Penn State has about $1 billion in debt, Moody’s said. A downgrade could make it more expensive for Penn State to borrow money, which would be another long-term cost in a scandal that has already cost the school immeasurably.
Paul M. Banks is CEO of The Sports Bank.net, an official Google...