HARRISBURG, Pa. (AP) — The ratings agency Standard & Poor's is downgrading Penn State University's long-term bond rating to AA, citing litigation against the school over the Jerry Sandusky child molestation scandal.
S&P announced the new rating Monday, saying expenses related to the Sandusky matter have also contributed to financial uncertainty.
It says the university has strong financial management, diverse sources of revenue and a good track record of financial performance. It's had stable enrollment at the main campus in State College and a good fundraising record.
On the downside, it lists a "constrained" state funding picture, Penn State has limited flexibility on tuition, it's seen some lower enrollment in professional programs and at some branch campuses and it has continuing capital needs.
Sandusky is serving a minimum 30-year sentence but plans to appeal.
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