Sandusky Scandal Leads Moody’s to Cut Penn State’s Credit Rating

Pennsylvania State University had its credit rating cut one level by Moody’s Investors Service because of the “substantial financial impact” of the Jerry Sandusky child sex-abuse scandal.

The downgrade, to Aa2, the third-highest rating, affects $893 million of debt. On Oct. 15, Standard & Poor’s revised its credit outlook on Penn State to negative. S&P also gives the university its third-highest rating.