CHICAGO - Loyola University of Chicago has stepped up to help its ailing health system with an infusion of $19 million in cash, a move that staved off the system's violation of bank liquidity terms and the loss of its investment grade credit.

However, the potential fiscal burden of the Loyola University Health System also now threatens the university's own more solid credit standing. Moody's Investors Service moved to place the school's A2 underlying credit on its watch for a possible downgrade because of the financial pressures LUHS places on its credit. The action impacts $209 million of university debt.

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