Illinois University Ratings Cut by Moody's Amid Budget Turmoil
- Six public universities are lowered, outlooks negative
- Credit rater cites exposure to state that still has no budget
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Six Illinois public universities had their credit ratings on about $673 million of debt cut by Moody’s Investors Service because of a political standoff that’s left the state without a budget for four months.
The credit-rating company lowered Western Illinois, Eastern Illinois and Governors State by two steps to Baa3, one level above speculative grade, while Northeastern Illinois was dropped one rank to Baa2. Moody’s cut Northern and Southern Illinois one grade to Baa1, three levels above speculative grade. All have negative outlooks, signaling that they could be lowered again.