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Michigan State's Nassar Scandal May Be Costlier Than Sandusky

Larry Nassar sits in court in Charlotte, Michigan on Feb. 5, 2018.

Larry Nassar sits in court in Charlotte, Michigan on Feb. 5, 2018.

Photographer: Scott Olson/Getty Images

Michigan State University’s ties to former Olympic gymnastics doctor Larry Nassar may be a costlier problem for the college than Pennsylvania State University’s Sandusky scandal, according to a new report.

Michigan State faces credit rating, settlement cost and political scrutiny concerns, according to a report published Tuesday by Wells Fargo Securities. Last month, Michigan State’s credit rating outlook was revised to negative from stable by S&P Global Ratings, and Moody’s cut the school’s outlook to negative in January.