SEVERE WX: Winter Weather Advisory View Alerts
STREAMING NOW: Watch Now

Larry Nassar scandal could cost Michigan State its credit rating

Moody's is weighing whether to downgrade the debt of Michigan State University because of the scandal involving disgr...

Posted: Jan. 31, 2018 11:44 AM
Updated: Jan. 31, 2018 11:44 AM

Moody's is weighing whether to downgrade the debt of Michigan State University because of the scandal involving disgraced USA Gymnastics team doctor Larry Nassar.

A rating downgrade could mean the school would have to pay more to borrow money.

Nassar was a member of the MSU faculty. He pleaded guilty to charges he sexually abused his patients and was sentenced last week to 175 years in prison.

Michigan State faces lawsuits by more than 100 women, alleging that the university allowed Nassar's abuse to persist despite victims' complaints. The suits are one of the major factors prompting the Moody's review. The school is seeking to have those lawsuits dismissed. Lou Anna Simon resigned as school president last week.

Related: How sexual harassment can affect mental health

Moody's, which announced the review of the school on Monday, says it also will determine if the scandal will dampen donations to the school or lead to a decline in applicants. Moody's said it will monitor ongoing investigations of the school by Congress, the Michigan state legislature, the U.S. Department of Education, and the NCAA.

Related: The man tasked with finding out who failed Larry Nassar's victims

The school has $975 million of long-term debt, according to Moody's, rated Aa1, which is the second highest rating.

Article Comments

Mason City
Overcast
28° wxIcon
Hi: 32° Lo: 20°
Feels Like: 19°
Albert Lea
Overcast
27° wxIcon
Hi: 30° Lo: 18°
Feels Like: 20°
Austin
Overcast
28° wxIcon
Hi: 28° Lo: 18°
Feels Like: 23°
Charles City
Overcast
28° wxIcon
Hi: 32° Lo: 21°
Feels Like: 28°
Rochester
Overcast
28° wxIcon
Hi: 30° Lo: 18°
Feels Like: 21°
We're tracking accumulating snowfall for tonight
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Holiday Driving in Snowy Conditions

Image

STEM Lego kits to be purchased at Bonner Elementary School

Image

Preparing for the impending snowfall

Image

AT&T donates money to create scholarships at RCTC

Image

Mason City gives an update on the River City Renaissance Project

Image

PTSA meeting cancellation called 'a misunderstanding'

Image

Your StormTeam 3 Weather Forecast for Friday

Image

Apples for educators

Image

Helping the homeless

Image

Your Friday KIMT StormTeam3 Forecast

Community Events