The College of DuPage’s credit rating was downgraded two notches Friday in response to recent sanctions against the school and vitriolic infighting among trustees.
In lowering the rating to AA from AAA, rating agency Standard & Poor’s noted the college had recently been placed on a two-year probation by its accreditation agency — a rare reprimand in higher education. It also cited “unstable board governance and management turnover.”
“The negative outlook reflects the at least 1 in 3 chance that we could lower the rating further within the two-year outlook period, given the uncertainty surrounding the college’s probation status and unsettled board turmoil,” Standard & Poor’s credit analyst Blake Yocomsaid in a statement.
The college’s credit rating reflects the likelihood that the school will be able to repay the interest and principal on a loan. A strong credit rating can mean better interest rates on the school’s debt and future borrowing — which often is paid off with tax dollars.
Former President Robert Breuder frequently touted the college’s AAA rating — the highest possible — as one of his biggest accomplishments. However, many of the problems cited by the Higher Learning Commission when placing the school on probation came under Breuder’s watch, including breaches of the school’s investment policies.
Breuder and the college’s two top financial officials were fired last year as part of sweeping changes at the state’s largest community college. The college is under federal and state criminal investigation.
College spokesman Joseph Moore said that while the college is “still in excellent financial condition,” school attorneys “are going to be examining the ramifications of the lower bond rating, including how it might affect current debt.”
College trustees have been split 3-3 since the board’s chairwoman quit in December, leading to meeting boycotts and at times bringing school business to a standstill. The stalemate is expected to end soon, when the state agency that oversees the school appoints someone to fill the vacancy.
That move could eventually help the college’s credit rating.
“We could revise the outlook to stable should the college improve and adhere to its financial management policies and successfully resolve its accreditation probation while demonstrating stable governance,” Yocom said.
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![A Carpentersville man remains in Lake County Jail as Thursday, held on sexual assault charges after he reportedly groped a co-worker. According to a Lake Zurich Police Department news release, officers responded April 19 to the 600 block of America Court on a call of a sexual assault. Officers said a man at the assisted living complex, who was identified as Everado Cardenas, of the 100 block of Bolz Road in Carpentersville, was accused of “[grabbing] the breast and genitals of another employee of the business without her consent,” according to the release. Cardenas, 53, was arrested at the scene. […]](https://www.chicagotribune.com/wp-content/uploads/migration/2018/08/23/7XZEANKDMZBJLMO6IIT6OFUP6M.jpg?w=535 "A Carpentersville man remains in Lake County Jail as Thursday, held on sexual assault charges after he reportedly groped a co-worker. According to a Lake Zurich Police Department news release, officers responded April 19 to the 600 block of America Court on a call of a sexual assault. Officers said a man at the assisted living complex, who was identified as Everado Cardenas, of the 100 block of Bolz Road in Carpentersville, was accused of “[grabbing] the breast and genitals of another employee of the business without her consent,” according to the release. Cardenas, 53, was arrested at the scene. […]")
