Fallout Grows: Moody's Warns Penn State Could Face Downgrade

Days after Penn State was slammed with a $60 million penalty and other painful sanctions, Moody's warned it may downgrade the school's credit rating. The warning is the latest gloomy news for Penn State, which has seen its reputation and prospects hurt badly by the Sandusky child molestation scandal that has ripped through the sports world this year. Moody's Investors Service said on Tuesday it is placing Penn State's “Aa1” rating on review for a downgrade. Recent reports and investigations “collectively point directly to weaknesses in the university's management and governance practices,” Moody's said in a statement. The ratings company cited the release of the devastating Louis Freeh Report, which was heavily critical of Penn State officials and legendary coach Joe Paterno for failing to stop sexual abuse of children by former assistant coach Jerry Sandusky. Continue reading this article

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