Moody's is reviewing Temple University's long-term rating. Credit: Rikard Larma, Metro Moody's is reviewing Temple University's long-term rating. Credit: Rikard Larma/Metro

Moody's is reviewing Temple University's long-term credit rating, with a downgrade possible.

Temple University Health System saw the investors' service reduce its rating from Ba1 (stable) to Ba2 (negative) on July 16.

Moody's expects that Temple University Health System will incur a "significant" operating loss for fiscal year 2013.

 

"The review for downgrade reflects our concern that the link between Temple University and Temple University Health System may stress resources of the university," according to a statement from Moody's.

Temple University currently is rated Aa3 by Moody's.

The review will include a look at the "university board's perspective as to [Temple University Health System's] role within the Temple organization as well as clearly defined options under consideration to address [Temple University Health System's] viability ... projected FY 2013 financial results, final fall 2013 enrollment and the FY 2014 budget."

For an explanation of Moody's rating system, click here.

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