Now that the dust has begun to settle from the chaos at Penn State this week (though it's sure to still be blown by the winds of disappointing developments), the effects of Jerry Sandusky’s horrific actions are beginning to take shape.
The football stuff we will see tomorrow. But there will be other, greater issues the university will face as a result of both Sandusky’s actions and its own inaction during the first few days of this crisis. Here’s one:
Bloomberg News is reporting that Moody’s Investors Service may downgrade Penn State’s pristine Aa1 bond rating:
Nov. 11 (Bloomberg) — Penn State University had its Aa1 revenue bond rating placed on review for possible downgrade by Moody’s Investors Service amid a probe into a child sex-abuse scandal.
Moody’s said it will examine the reputational and financial risk arising from the investigation, after the Penn State football team’s former defensive coordinator, Jerry Sandusky, was charged with the sexual assault of eight boys from 1994 to 2009.
Basically, Moody’s sees enough concern with Penn State's financial future that they are going to look into downgrading their rating of the school’s bonds, an action that casts some doubt on Penn State's ability to fulfill financial obligations.
There’s no cause for serious alarm – yet – but this goes to show how far-reaching the fallout of Sandusky’s actions could be.
In an (unrelated) effort to restore confidence with students, new president Rodney Erickson emailed students today. That email is after the jump.