HARRISBURG, Pa. (AP) — The ratings agency Standard & Poor’s is revising Penn State University’s outlook to negative from stable and affirming the AA long-term bond rating, citing litigation against the school over the Jerry Sandusky child molestation scandal.
S&P announced the change 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, and it’s seen lower enrollment in professional programs and at some branch campuses.
Sandusky is serving a minimum 30-year sentence but plans to appeal.
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