THE REVIEW: Moody’s Investors Service said Tuesday it is reviewing its rating on Penn State’s credit and may lower its rating. It said the fallout of the Jerry Sandusky child abuse scandal could hurt the school’s fundraising and student enrollment.
THE RATING: Moody’s has an ‘Aa1’ rating right now. That is its second-highest rating, nine notches above non-investment grade or “junk” status. A downgrade could make it more expensive for Penn State to borrow money.
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A DAY AFTER: On Monday, the NCAA hit Penn State with severe sanctions for its failure to take action against Sandusky.
