Yeshiva University may have its credit rating cut by Moody’s because of its $110 million in losses in the Madoff scandal, according to Bloomberg:
Yeshiva University’s rating for $177.2 million of debt may be cut by Moody’s Investors Service because of Bernard Madoff’s alleged fraud.
The Aa2 rating, the third highest, is on a watch list, pending possible downgrade, New York-based Moody’s said today in a statement. The university yesterday disclosed losses of about $110 million in investments tied to Madoff.
Moody’s said the New York-based university has incurred losses and has “a relatively small amount” of its remaining funds in liquid investments. The full extent of the school’s exposure to Madoff-related losses may not be known, and the rating will undergo a 90-day review, Moody’s said in the statement.
“We will be looking at the credit very closely during this period,” said John Cline, a Moody’s spokesman. “Despite this loss, Yeshiva still has a substantial balance sheet and other credit strengths.”