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S&P lowers SIU to junk bond status

Thursday, Apr 20, 2017 - Posted by Rich Miller

* Click here and here if you have a Bond Buyer subscription, but here’s their reporter…


       

27 Comments
  1. - Signal and Noise - Thursday, Apr 20, 17 @ 5:18 pm:

    Bond holders react really well this this kind of news. I don’t envy any CFO’s in public higher ed right now.


  2. - Nickname - Thursday, Apr 20, 17 @ 5:27 pm:

    None of them can file bankruptcy. The discount gets deeper and the vultures will make more money.


  3. - Juice - Thursday, Apr 20, 17 @ 5:29 pm:

    Western, Eastern and Governor’s state all downgraded as well.

    Eastern and GSU were already in junk.

    Western was downgraded from BBB- to BB-, placing them in junk status.


  4. - illini - Thursday, Apr 20, 17 @ 5:29 pm:

    This is the 5th story that Rich has posted in the past 4 days about UIUC and the Regionals. And the deliberate destruction of all of Higher Education in Illinois.

    The State refuses to even come close to adequately fund any of our institutions, yet their one option is to issue bonds to help keep them afloat.

    But when these bonds fall into the “junk” category and are placed on the Watch List any reasonable person would have to ask “What the h##l is going on?”

    Even my Alma Mater is being impacted.

    What will it take to reverse this trend? Or, are the few survivors doomed to become third rate relics of once proud and productive parts of our states economy?


  5. - Liberal Elite - Thursday, Apr 20, 17 @ 5:31 pm:

    Passing literally any budget would be better than a continued stalemate that decimates our state’s public universities. There’s no possible way that making a 15% reduction in worker’s comp awards (already down 6.4% since 2010) and passing term limits just to get rid of a 75-year-old speaker is worth destroying higher education in the state. It just isn’t.


  6. - Arthur Andersen - Thursday, Apr 20, 17 @ 5:38 pm:

    Illini, have faith. The Big U has been around for 150 years and has survived a lot. If I was buying bonds right now, I wouldn’t hesitate to buy U of I debt.


  7. - Oswego Willy - Thursday, Apr 20, 17 @ 5:40 pm:

    The Rauner Library and the Rauner Dormatory at Dartmouth are fine…

    … Diana and Bruce Rauner are just continuing the destruction of the state universities, I guess at this point for their own personal amusement?

    Congrats to Raunerites in the GA, you are now seeing the real destruction of Diana and Bruce controlling your voting switches…


  8. - illini - Thursday, Apr 20, 17 @ 5:44 pm:

    @ArthurAndersen - believe me I do still have faith.

    I was a First Semester Freshman 50 years ago when the was celebrating its Centennial. Now 50 years later its status is being threatened as I have never seen.


  9. - RNUG - Thursday, Apr 20, 17 @ 5:45 pm:

    == None of them can file bankruptcy. The discount gets deeper and the vultures will make more money. ==

    That is the whole ball game, creating high interest / relatively low rick investments for the 1.4%.


  10. - anon - Thursday, Apr 20, 17 @ 5:52 pm:

    shame on the boards of these universities for not turning the students loose on Rauner and the legislature –if this were California the streets would be filled—these boards have a duty to the institution, not to their appointing power–grow some stones


  11. - Saluki - Thursday, Apr 20, 17 @ 6:16 pm:

    ….


  12. - Arthur Andersen - Thursday, Apr 20, 17 @ 6:22 pm:

    Illini, I’m about seven years behind you. True that these are unprecedented times.


  13. - @misterjayem - Thursday, Apr 20, 17 @ 6:27 pm:

    == None of them can file bankruptcy. The discount gets deeper and the vultures will make more money. ==

    That is the whole ball game, creating high interest / relatively low rick investments for the 1.4%.

    Serious question for Bruce Rauner’s defenders: If Bruce Rauner really did want to make University bonds into high interest/low risk instruments, what exactly would he do differently?

    – MrJM


  14. - TNR - Thursday, Apr 20, 17 @ 6:36 pm:

    No worries, this is making the universities stronger. Just ask the EIU president.


  15. - Anon221 - Thursday, Apr 20, 17 @ 6:42 pm:

    I would love to see the Rauners’ investment portfolio. I’m sure they are both “recusing” themselves from “helping” these universities out. But then again… there’s those economic and education agendas they both promoted to get him elected in the first place…


  16. - Thomas Griffin - Thursday, Apr 20, 17 @ 7:13 pm:

    We are going to flood Springfield next Thursday but I am sure Rauner will hide in his bunker at the state fairgrounds or go on another campaign tour.


  17. - 47th Ward - Thursday, Apr 20, 17 @ 7:20 pm:

    Does this mean SERS and other pension funds have to dump any bonds they hold or that they can’t buy more? Once you lose the institutional investors all you have left is the speculators.


  18. - Nickname - Thursday, Apr 20, 17 @ 7:27 pm:

    @47th Ward

    Depends on the Charter for the Retirement Systems and whatever purchase agreement exists (assuming the systems bought them pre-offering).


  19. - Nickname - Thursday, Apr 20, 17 @ 7:31 pm:

    @MrJM

    Maybe wear a monocle and smoke a cigar. Other than that, absolutely nothing.

    I’ll be convinced this is intentional when he throws them a lifeline right before either (a) they close or (b) they miss a bond payment. Until then I’ll try to mute my cynicism.


  20. - Ducky LaMoore - Thursday, Apr 20, 17 @ 7:37 pm:

    Glad I was already drinking…. Wow. Is it considered insider trading when you know what is going to happen because of the CapFax…?


  21. - Louis Capricious - Thursday, Apr 20, 17 @ 8:29 pm:

    === That is the whole ball game, creating high interest / relatively low rick investments for the 1.4%. ===

    I don’t doubt that is the objective or, at the least, a result he is happy to produce as part of his effort to suffocate the institutions of state government until such time that the Democrats agree to unilaterally disarm (via passage of his agenda).

    But if that truly is what’s afoot, shouldn’t the feds be asking questions?


  22. - Tired Teacher - Thursday, Apr 20, 17 @ 8:50 pm:

    It is an economic and moral crisis. The loss of talent as students head out of state deals Illinois an economic body blow today and in the future. For the Gov. to not step in and immediately work a budget for the students of our state shows his lack of a moral compass. It is a situation that I could have never imagined.


  23. - Living it daily - Thursday, Apr 20, 17 @ 9:01 pm:

    protesting the Governor’s inaction at providing a balanced budget so far, at his new compound, sounds like a good idea. I believe the State Fair grounds are public, and there is a gate right in front of the Managers house, so see you there!


  24. - Anonymous - Thursday, Apr 20, 17 @ 11:07 pm:

    Squeeze the beast.

    What’s the mystery?

    How you likin’ , all that attention, Downstate voters?

    You’re getting clobbered, by your governor.Played for fools.

    Rauner made a fortune in the private sector as a deadbeat, bust- out artist.

    So… thats what he does.


  25. - Anonymous - Friday, Apr 21, 17 @ 12:17 am:

    He needs to be removed immediately.


  26. - illini - Friday, Apr 21, 17 @ 6:29 am:

    What is one to think when the lead report on KMOX this morning is the Chancellor of SIUE stating categorically that the campus will open in the fall.

    Apparently this is no longer assumed to be a given and that our Regionals are needing to go to great lengths to reassure the entering class and retain those already enrolled.


  27. - Rocky - Friday, Apr 21, 17 @ 7:53 am:

    why cant we move to get rid of Rauner?


Sorry, comments for this post are now closed.


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