Cornell University's plans to establish an applied-sciences engineering campus in New York City should enhance the school in the big picture despite anticipated credit risks in the short-to-medium term, according to a major rating agency.

"We anticipate that this joint venture will likely be a long-term credit positive for Cornell," Moody's Investors Service said after Mayor Michael Bloomberg on Monday announced a partnership with Cornell and the Technion-Israel Institute of Technology to build a two-million-square-foot center on Roosevelt Island in the East River.

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