Moody's Investors Service says it may cut its rating on Penn State's credit.
The news comes as the university deals with fallout from the Jerry Sandusky child sexual-abuse case and sanctions against the school's football team.
Penn State currently has Moody's second-highest possible rating.
The firm said a recent report by former FBI director Louis Freeh and sanctions levied by the NCAA could hurt student enrollment and fundraising for the university.
Moody's says Penn State has about $1 billion in debt.
The announcement coming a day after the NCAA fined Penn State $60 million, banned the school from playing in post-season bowl games for four years, and stripped the team of dozens of scholarships.
Your Friday will feature steadier showers and thunderstorms early giving way to scattered showers and thunderstorms throughout the day. We reach an early High of 64, followed by falling temperatures. Winds pick up out of the NW 10 to 15 mph. Right now the Memorial Day Weekend looks cool with highs in the low to mid 60s.