Nick Anderson, THE WASHINGTON POST
WASHINGTON (The Washington Post) — Moody’s Investors Service cut Howard University’s credit rating Friday for the third time in three years, reflecting continuing financial struggles at one of the nation’s premier historically black institutions.
The agency’s rating on $290 million of revenue bonds stands at Ba2, down from Baa3. The new designation indicates that Moody’s considers the university’s debt below investment grade and a “substantial credit risk.”
As recently as September 2013, Moody’s rated Howard’s debt at A3 — a low risk.
In the Moody’s system, there are 21 rating levels, from Aaa at the top to C at the bottom.