PITTSBURGH POST-GAZETTE: …On one hand, Moody’s said it has removed Penn State from its “Watchlist for Possible Downgrade” and is confirming the university’s Aa1 long-term rating.
But the service also said it is assigning a “negative outlook” to Penn State within that rating class because of “ongoing uncertainty” regarding risks related to the child sex abuse scandal involving retired coach Jerry Sandusky…
“We expect that the most likely outcome will be that the university will settle a manageable number of claims by victims, with no substantial financial weakening, while also maintaining high levels of donor support and student demand,” Moody’s said in a statement. “We also consider risks of loss of research funding competitiveness to be minimal.” … (more)
