The ratings agency Standard and Poors is revising Penn State University’s outlook to negative from stable and affirming its AA long-term bond rating, citing litigation against the school over the Jerry Sandusky child molestation scandal.
 
S&P announced the new rating Monday, saying expenses related to the Sandusky matter have also contributed to financial uncertainty.
 
It says the university has strong financial management, diverse sources of revenue and a good track record of financial performance. It’s had stable enrollment at the main campus in State College and a good fundraising record.
 
On the downside, it lists a “constrained” state funding picture, Penn State has limited flexibility on tuition, it’s seen some lower enrollment in professional programs and at some branch campuses and it has continuing capital needs.