Six Illinois universities have seen their credit ratings lowered because of the state's ongoing budget stalemate. And the lower a credit rating, the higher the cost of borrowing money.
Moody's Investors Service downgraded ratings for Eastern Illinois, Governors State, Northeastern Illinois, Northern Illinois, Southern Illinois and Western Illinois universities.
The agency says a significant portion of the universities' funding comes from the state, which is about to enter its fifth month without a budget.
Moody's also notes that cuts to higher education spending are likely once Republican Gov. Bruce Rauner and Democrats who control the Legislature agree on a spending plan.
Moody's and Fitch Ratings downgraded the state's credit rating last week because of the financial crisis. Illinois already had the lowest rating of any state.
