Moody’s Investors Service is warning of a possible down-grade in Southern Illinois University’s long-term credit rating from stable to negative.
The financial ratings service issued the advisory Tuesday for all of Illinois’ public universities. Moody’s says it has placed the universities' credit rating under review for possible downgrade to “negative” because of the significant dependence on the state of Illinois for operating funds and fringe benefits. Moody’s says the extensive delay in the state of Illinois providing the universities with their appropriations is affecting their cash flow and liquidity.
Moody’s has already warned it may lower the state’s credit rating unless it deals with its unfunded pension problems. The State of Illinois already holds Moody’s lowest rating, one notch below California.
