Moody's reviews Penn State for downgrade

@CNNMoney November 11, 2011: 7:03 PM ET

NEW YORK (CNNMoney) -- Moody's Investors Service is reviewing the risk to Penn State's reputation and finances in the wake of a child sex abuse scandal that has rocked the university.

In coming months, the credit rating agency will evaluate whether the university should be downgraded. Penn State carries the second highest credit rating, reflecting very strong student demand and a strong national academic brand.

The university has about $1 billion in rated debt.

The Pennsylvania Attorney General earlier this week filed criminal charges against a former assistant football coach, as well as perjury and other charges against two senior university officials. The subsequent firestorm cost famed head football coach Joe Paterno and the university president their jobs.

The scandal could also cost the university millions of dollars, particularly in merchandise sales and sponsorships.

Its revenue of $72.7 million from football last season was the fifth highest of any college program in the country, according to a CNNMoney analysis of figures reported by each school to the Department of Education.

Penn State: $53 million in profits at stake

And Penn State football's profit of $53.2 million was second only to the University of Texas' total of $71.2 million.

The full impact of the increased risks will unfold over years, Moody's said. It will evaluate the risks from potential lawsuits, settlements, weaker student demand, management changes and fundraising challenges.

Penn State is Pennsylvania's flagship public university with more than 80,000 students and operating revenues of $4.6 billion.

CNNMoney senior writer Chris Isidore contributed to this story.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.95%3.98%
15 yr fixed3.08%3.04%
5/1 ARM3.43%3.30%
30 yr refi4.04%4.05%
15 yr refi3.17%3.11%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Economic Calendar
Latest ReportNext Update
Home pricesAug 28
Consumer confidenceAug 28
GDPAug 29
Manufacturing (ISM)Sept 4
JobsSept 7
Inflation (CPI)Sept 14
Retail sales Sept 14
CNNMoney Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.