Six Illinois universities receive downgraded credit ratings due to budget impasse

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ILLINOIS - First, it was the State of Illinois' credit rating being further reduced, but now six Illinois universities have had their credit ratings lowered due to the state's lack of a budget.

Eastern Illinois, Governor's State, Western Illinois, Southern Illinois, Northeastern Illnois and Northern Illinois universities all received downgraded credit ratings on Monday by Moody's Investors Service.

Moody's stated, since a large portion of these universities' funding comes from the state budget, it had to lower their credit ratings. That will make it more difficult, and more costly, for those universities to borrow money to make up for the gap.

Plus, Moody's says, it's highly likely that the Rauner administration and the Illinois legislature will impose more significant cuts to higher education once they do pass a budget, which was factored into that decision. Both Moody's and Fitch Ratings downgraded the state's credit rating last week, keeping Illinois the state with the lowest rating in the nation.

Illinois has been operating without a state budget for almost five months now.

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