ISU Credit Rating Unchanged With An Asterisk | WGLT

ISU Credit Rating Unchanged With An Asterisk

Apr 21, 2017

S and P Financial Services leaves Illinois State University's (Watterson Towers and Old Union pictured) credit rating unchanged for now.
Credit Staff / WGLT

Illinois State University's bond rating remains unchanged, though the Standard and Poor's agency has placed ISU on a credit watch.

That's in recognition of the state budget crisis and a lack of more than $80 million the university would regularly have received in the last two years if not for the deadlock between the governor and lawmakers.

ISU Vice President for Finance and Planning Greg Alt said S&P Financial Services affirmed ISU's existing A credit rating but shifted from a negative outlook to a credit watch for the institution in Normal.

"They're probably more inclined to do a downgrade. With a negative outlook they are simply signaling to the market that the trend, if it continues, could lead to this. And the trend has continued with the state situation so, it's signaling to the market they are approaching the need to do a downgrade," said Alt.

Unlike ISU, Southern Illinois University and the University of Illinois U of I both received credit downgrades.

"We have had good revenue because there is strong enrollment. That has helped us continue to operate in providing classes to students and operate the campus without any significant changes to that," said Alt.

The U of I's actual bond rating remains higher than ISU's designation.