www2.illinois.gov
www2.illinois.gov
Southern Illinois University had its bond ratings downgraded by Moody's Investors Service.
The school's Auxiliary Facilities Revenue Bonds rating went from Baa2 to Ba2, while its Certificates of Participation rating went from Baa3 to B1. Ratings in the Ba range means the financial obligations “have speculative credit quality and subject to substantial credit risk,” according to moodys.com, while obligations in the B range “are considered speculative and are subject to high credit risk.”
SIU's downgrade is fueled by the state's struggles with finalizing a budget for the first time since 2015, the report says.
The Moody's report gave a negative outlook for the school.
“The negative outlook reflects SIU's exposure to ongoing potential reductions and delays in state funding with limited alternative revenue growth potential with already thin liquidity and weakened operations. Liquidity constraints and additional credit pressure will become even more material by fall should the state not pass a budget bill and provide immediate payment of funding to the university,” the report says.
Moody's review of SIU's outlook began on April 17.
Alerts Sign-up