MICHIGAN
Reuters
CHICAGO (Reuters) – Michigan State University’s heightened financial risk in the wake of a sex abuse scandal involving former USA Gymnastics doctor Larry Nassar led Moody’s Investors Service to cut the school’s credit rating to Aa2 from Aa1 on Thursday.
The credit rating agency said the downgrade, which affects about $975 million of debt, was prompted by a growing number of lawsuits, federal and state probes, and Michigan legislation that could all hurt the university’s finances.
Plaintiffs and investigators question why the U.S. Olympic Committee, USA Gymnastics and Michigan State University, where Nassar also worked, failed to probe complaints about him going back years.
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