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Penn State's Credit Rating May Be Downgraded

Here come the financial consequences.

Here's a whole new twist to the Penn State saga.

Moody's Investor Services, one of the world's major credit rating agencies, says it "may" cut Penn State's credit rating as a result of sanctions placed on it by the NCAA and Big Ten, according to CNNSI.

"...sanctions levied by the NCAA could hurt student enrollment and fundraising for the university, and the school also faces uncertainty in the form of ongoing federal and state investigations."

PSU's current rating is "Aa1", which is just below the highest possible. A rate drop would make it more difficult for the institution to borrow money.

It's interesting that Moody's thinks that fundraising will be affected so greatly. A few weeks back, Penn State announced it had received over $208 million in donations this year, the second highest in its history. While that was before the NCAA's decision, it certainly wasn't before the scandal.