NEW YORK (AP) -- Moody's Investors Service says it may cut its rating on Penn State's credit as the university deals with the fallout from the Jerry Sandusky child sexual-abuse case and sanctions against the school's football team.
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.
Moody's says Penn State has about $1 billion in debt.
The announcement comes a day after the NCAA fined Penn State $60 million, banned the school from playing in postseason bowl games for four years, and stripped the team of dozens of scholarships.
(COPYRIGHT 2011 BY THE ASSOCIATED PRESS. ALL RIGHTS RESERVED.)
KKCO firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKCO 11News.powered by Disqus
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.