Nassar fallout hurts Michigan State University financial rating

LANSING (MI)
Detroit Free Press

March 29, 2018

By David Jesse

A financial rating firm has dropped its outlook for Michigan State University to negative as it evaluates the fallout from the Larry Nassar sexual assaults scandal.

S&P Global Ratings credit analyst Ashley Ramchandanisaid pending investigations into MSU, along with lots of turnover in senior leadership, sparked the change. The firm also says they aren’t sure how all the fallout will shake out.

“While management reports the hiring of additional staff and implementation of amended policies to address sexual assault prevention, patient care and campus safety, in our opinion, current campus community tension may stall prompt and equitable resolution of stakeholders’ concerns.”

Ratings affect the university’s ability to borrow money through bonds and the interest rates it gets. The agency left the rating for current bonds unchanged.

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