The ratings agency Standard & Poor's has revised Penn State University's outlook to negative from stable, citing litigation against the school over the Jerry Sandusky child molestation scandal, but affirmed its long-term bond rating.
S&P announced the change Monday, saying expenses related to the Sandusky matter also have contributed to financial uncertainty.
The university has strong financial management, diverse sources of revenue and a positive track record of financial performance, the ratings agency said. Enrollment at the main campus in State College has been stable and fundraising good.
On the downside, S&P listed a "constrained" state funding picture, limited flexibility on tuition and lower enrollment in professional programs and at some branch campuses.