Moody's may downgrade Penn State's credit

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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.

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