WASHINGTON - Moody's Investors Service is reviewing Howard University for a possible downgrade of its credit rating as the historically black college faces financial challenges.
The Washington Post (http://wapo.st/186VVku ) reports Moody's has assigned an A3 rating to Howard since 2011 for about $290 million in bonds as the school was planning campus upgrades. That rating indicates a low risk the university would default on its debt. The next lower rating would indicate a moderate risk.
Moody's said in a statement Monday that the review "reflects Howard University's extremely pressured environment." The agency cited an enrollment decline, cuts in federal funding and a drop in the university's hospital business. Howard faces a $25 million reduction due to Congress' automatic budget cuts.
In January, Moody's expressed a negative outlook for the higher education sector.
Information from: The Washington Post, http://www.washingtonpost.com
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.