FORT VALLEY, Ga. -- As historically black colleges and universities across the nation struggle, credit rating agency Moody's Investor Service says Fort Valley State University, which is part of the University System of Georgia, is facing a $2 million deficit, has a miniscule amount of cash available and has a grim outlook as enrollment drops and funds dwindle.
Moody's Investor Service recently affirmed its credit rating on bonds that were issued in 2006 for student housing at FVSU. The rating of Baa1 is still considered a medium ranking by Moody's (which rates bonds from highest quality to being in default), but that is lower than in previous years.
In 2012, the university's good quality rating was downgraded, and its financial outlook was revised to negative, according to a press release issued by Moody's.
FVSU President Ivelaw Griffith acknowledged declining enrollment and budget cuts have factored into the bond rating, but the university is taking steps to fix those issues, particularly campus growth.
Fort Valley State is part of a string of historically black colleges and universities that have received negative outlooks from Moody's.
Alabama State University's credit rating was downgraded Tuesday, and Howard University's was reduced in September. Atlanta's Morehouse College's rating was downgraded last year.
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(Atlanta Business Chronicle)