PSU news by
Penn State's student blog



Moody’s Improves Penn State’s Credit Ranking To Aa1

President Eric Barron spent a large portion of his report at Friday’s Board of Trustees meeting discussing strategic planning, how important it is for students to graduate in four years, and how the lack of a state appropriation is affecting and will continue to affect the university as time goes on.

Despite this potentially dark future, Barron ended his report by announcing he did have one bit of good news: Moody’s increased Penn State’s credit rating to Aa1.

“This is a signal that this is an extraordinarily well-run university that’s fiscally been quite conservative, and this is a tremendous vote of confidence that this university is run well, and I am very proud of our vice presidents that are deeply involved and committed when it comes to making sure that we have a successful institutions,” Barron said of the ranking.

The Aa1 rating brings Penn State back to where it used to be — the university improved from Aa2 to Aa1 November 2011. This year’s ranking is an increase from last year’s Aa2 credit rating, at which time the university garnered a “positive outlook.” In 2013, the university improved its rating after a downgrade in 2012 from the $59.7 million as a result of settlements following the Sandusky scandal. At the time, Moody’s predicted Penn State would be able to resolve the claims while maintaining and improving its already solid credit fundamentals.

Moody’s ratings determine the creditworthiness of the entities it analyzes by using a standardized set of factors. An Aa1 credit is the second-highest rating an entity can receive, and long-term it means the university is high-quality with a very low credit risk.

The university is expected to keep this Aa1 rating, as the increase also comes with a stable outlook from Moody’s. Follow along as the Board of Trustees’ February meeting continues in Hershey.

About the Author

Lexi Shimkonis

Lexi is an editor-turned-staff writer who can often be found at either Irving's or the Phyrst (with the chances she'll have her backpack being the same). Lexi is a senior hailing from Spring City, PA (kind of) and studying Civil Engineering. Please email questions and/or pleas for an Instagram caption to [email protected], or for a more intimate bond, follow her on Twitter @lexshimko.


More by Lexi

A Special, Precious, & Eventful Experience: Lexi Shimkonis’ Senior Column

“And here in this lovely, intriguing spot called Penn State, each of us staked our own special, precious, and eventful life.” — Ross Lehman

Homecoming To Replace King And Queen With Gender-Neutral Court

[Video] An Interview With Line Dance Leader Gina DeFrancesco


Shea Moyer Lifts Penn State Women’s Soccer Past West Virginia 1-0

Sophomore midfielder Shea Moyer scored the game-winning goal in the 80th minute of a rainy season opener at Jeffrey Field.

Penn State Women’s Soccer Poised For Strong 2018 Season

Incoming Penn State Track & Field Athlete Kristian Marche Shot To Death In Philadelphia

Former Women’s Gymnastics Coach Files Lawsuit Against Penn State Over Handling Of Abuse Allegations

Men’s Soccer Trio, Reading United Win PDL Eastern Conference Title, Fall Short Of National Championship

Student Life

Student Body President Cody Heaton Welcomes Class of 2022 At Convocation

UPUA President Cody Heaton welcomed the incoming Class of 2022 Saturday evening with an inspiring speech.

Start The Semester Off Right With These Welcome Week Activities

Nike Releases New Penn State Sneakers

Plans Submitted For New KFC In State College

Developers have submitted preliminary land development plans to build a new KFC restaurant at 1780 S. Atherton St. in State College.

Join Onward State: Fall 2018 Application

Onward State is hiring for the fall semester and we’d love to have you join us.

Penn State Officially Welcomes Class Of 2022 At Convocation

The Class of 2022 joined the Penn State family Saturday evening at Convocation.

Be the first to know

  • Top posts and the best Penn State stories

Thank you for subscribing.

Something went wrong.

Assessing Penn State’s Front Seven Following Tuesday’s Medical Retirements

Penn State’s defensive line rotation will be shaken up following Ryan Buchholz’s medical retirement from football, while the coaching staff is letting the linebackers duel it out during camp.

Send this to a friend