Saturday, November 12, 2011

From Our Dept of Unexpected Consequences: Moody's considers credit downgrade for Penn State

According to Reuters the child sex abuse scandal at Penn State University reached Wall Street on Friday when the ratings agency Moody's warned of a possible credit downgrade for the prestigious university.

"Over the next several months, Moody's will evaluate the potential scope of reputational and financial risk arising from these events," Dennis Gephart, a senior analyst at Moody's, said in a release.

Penn State's debt is currently rated Aa1, reflecting very strong student demand and other credit strengths at Pennsylvania's flagship university. Penn State has "approximately $1 billion of rated debt," Moody's said…

Wait...wait..there's more. Check out http://www.reuters.com/article/2011/11/11/usa-crime-coach-moodys-idUSN1E7AA1PM20111111

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