U Of L Could Lose Bond Rating In Wake Of Hoops Scandal

The University of Louisville and its foundation could see their credit ratings pummeled as the basketball scandal’s fallout continues. This week, the bond rating agency Moody’s Investors Service announced the university is under review for a possible downgrade, citing “recent criminal allegations against senior athletic personnel” and concerns over the university’s finances. Moody’s already downgraded U of L a notch last year to A1, citing instability in leadership and financial concerns. Investors and lenders use the ratings to determine U of L’s credit worthiness. The agency warned in its announcement that U of L’s rating could drop several more notches after this review, which will consider the lack of permanent leadership and whether Louisville is maintaining the confidence of donors and stakeholders.