Moody's warns UW could face credit downgrade
Thursday, July 28, 2011
OLYMPIA, Wash. (AP) -- The University of Washington faces a possible downgrade in its credit rating because of the federal government stalemate over raising the national debt ceiling.
Moody's Investors Service said Thursday that the university could lose its AAA rating. The agency said the warning reflects UW's large share of revenues from federal research grants along with Medicare and Medicaid reimbursements.
UW was the only university in the country placed under review Thursday. Moody's also listed 162 local governments for possible downgrade.
Federal officials say Congress needs to soon find an agreement on how to raise the debt ceiling or the government will not be able to pay all its bills. The administration of President Barack Obama has not said which bills would get paid if there is no deal.