Moody’s Investors Service is placing the ‘long-term ratings of all Illinois public universities under review for possible downgrade.’ Illinois Treasurer Dan Rutherford says the move should serve as "a wakeup call once and for all."
Rutherford blames lawmakers for not making significant pension reforms during this year’s legislative session. The latest Moody’s report states that the long-term ratings of state public universities are under review due to ‘significant dependence on the state for operating funds and fringe benefits, as well as extensive appropriation payment delays in a challenging budget environment that continues to pressure Illinois’ public universities cash flow and liquidity.’ Moody's rates a ‘total of $2.6 billion of rated university debt.’
*Northern Illinois University:
Auxiliary Facilities System Revenue Bonds: A2 under Review for Possible Downgrade
Certificates of Participation: A2 under Review for Possible Downgrade
Lease Revenue Bonds, Series 1999: A2 under Review for Possible Downgrade
The latest report from Moody’s can be found here: