Moody's Downgrades Mountain State Bond Rating - Beckley, Bluefield & Lewisburg News, Weather, Sports

Moody's Downgrades Mountain State Bond Rating

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BECKLEY (AP) -

Mountain State University's bond rating has been downgraded by Moody's Investor Service.

Moody's cites Mountain State's loss of accreditation from the Higher Learning Commission for its decision last week to downgrade the university's bond rating from Baa3 to B1.

Debt obligations rated B by Moody's are subject to high credit risk.

Moody's says in a news release that 89% of Mountain State's revenue in fiscal 2011 came from student charges. The loss of accreditation could cause enrollment to plunge, and students could no longer participate in federal financial aid programs.

A Mountain State spokesman didn't immediately return a telephone call Tuesday seeking comment.

Mountain State officials have said they will appeal the loss of accreditation. The private Beckley-based school will remain accredited during the appeal process.

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