U.S. | Tue Apr 18, 2017 | 4:26pm EDT

Two more Illinois universities at risk of junk ratings from Moody's

Illinois' record-breaking stretch without a complete budget could push the credit ratings of two more state universities into the junk level.

Moody's Investors Service on Monday said it placed seven state universities under review for potential downgrades affecting $2.2 billion of debt because Illinois has failed to provide them with full operating funding.

Four universities, Northeastern Illinois, Northern Illinois, Governors State, and Eastern Illinois, already have some or all of their debt rated junk. Multi-notch downgrades would push ratings for Illinois State and Southern Illinois universities into junk.

"We will review contingency plans and other expense actions initiated to cope with the shortfall in state operating appropriations. Also included in the reviews are budgeted (fiscal) 2018 operations and assumptions," the credit rating agency said in a statement.

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