Higher Education, No Budget Impact

Moody’s downgrades seven Illinois public universities. Moody’s Investors Service announced sweeping credit downgrades for seven Illinois universities on June 9 over concerns about the state’s nearly two-year budget impasse. Five of those seven – Southern Illinois University, Northern Illinois University, Governors State University, Northeastern Illinois University and Eastern Illinois University – now have junk credit ratings.

Moody’s downgrades come less than a month after S&P’s own mass downgrade of six universities in April.

Eastern Illinois University was the lowest rated university, downgraded from B2 to Caa2 with a negative outlook. That denotes speculative-grade credit quality. It is the lowest of the universities according to a separate Moody’s rating research document.

The University of Illinois’ new rating is A1 with a negative outlook. That’s down from Aa3 negative and still considered superior credit quality.

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