Moody’s Gives Negative Financial Outlook to U of I
By Sean Powers
Moody’s Investors Service has changed the financial outlook for the University of Illinois from stable to negative, but it did not downgrade the University’s credit rating.
U of I spokesman Tom Hardy said it is unclear how this will impact the University’s ability to borrow money. He said the negative outlook is an unfortunate side effect of relying on the state for support.
“This is something that every state institution has to deal with," Hardy said. "We’re not the only public university obviously in these circumstances. Outlooks change for some of the other public universities as well. It’s a reflection of the dire circumstances in the state's financial and fiscal situation.”
Hardy said the state owes the U of I about $480 million, and he adds that Gov. Pat Quinn’s proposed budget looks to cut an additional five percent in funding. He said that will make it even more challenging for the University to manage its cash flow.
Meanwhile, Moody’s has downgraded the credit rating for Eastern Illinois University and several other state schools.