Moody's Investors Service says it will review most of Illinois' public universities for potential credit downgrades over the next three months. The bond credit rating business also bumped Northeastern Illinois University's credit down two levels.
Moody's made the change citing "weakened cash flow" due in part to the state budget impasse. Illinois has been without a state budget for 22 months.
NEIU's credit is now three steps below what is commonly considered junk status. Northeastern's interim president called the downgrade very disappointing but not surprising.
Moody's says it will review credit ratings over the next 90 days for the University of Illinois, Illinois State University, Eastern Illinois University, Southern Illinois University, Northern Illinois University and Governors State University.