The credit rating agency Moody's has downgraded its bond rating for the University of Kansas. The rating fell one grade to AA2. The company cited what it calls "thin operating cash flow" and falling enrollment as the state faces budget challenges in the coming years.
KU's Joe Monaco says despite the downgrade, the rating is still the third-highest an institution can receive.
“An Aa2 rating is still a very strong rating that enables us to continue financing the projects and the operations we need to serve students and the state of Kansas,” Monaco says.
Moody's also downgraded Emporia State University's rating this week. Several other universities in Kansas had their bond ratings assessed, but left unchanged.
Moody's downgraded the overall state of Kansas bond rating last week.