LSU's credit outlook lowered
BATON ROUGE- The financial situation at Louisiana's flagship university continues to get worse. Moody's Investor Service has lowered LSU's credit outlook.
State treasurer, John Kennedy, says the move is due largely in part to slash state funding. This is just the most recent blow to higher education schools across the state. Louisiana colleges and universities are facing budget cuts that could be as high as 80%.
Moody's cited potential cuts, in dropping LSU from positive to stable. According to Kennedy, the drop puts LSU just one step away from a negative credit outlook.
Another reason the school was lowered is its inability to raise its tuition prices. Moody's said the school's rating could rise again, if the Legislature gives the school more control over its prices.