MOODY’S BOND-RATING agency has downgraded debt ratings for seven of Illinois’ eight public universities, including the University of Illinois. A Moody’s spokesperson also said the State’s fiscal and pension woes may cause further declines in the next 12 to 24 months.
THE UNIVERSITY of Illinois and the other universities rely heavily on funding from Illinois, which in June slid to Moody’s lowest bond rating in the nation and the lowest in Illinois’ history because of its underfunded pensions and record of slow payments of appropriated funds, Moody’s spokesman David Jacobson said.
A DOWNGRADE may make it more expensive for an institution to borrow, as a lower rating results in higher interest charges.
THE UNIVERSITIES involved in the downgrade besides the University of Illinois are Eastern Illinois University; Governors State University; Illinois State University; Northeastern Illinois University; Southern Illinois University, and Western Illinois University. Moody's issued no change in Northern Illinois' A3 rating.