Moody's Investors Service downgrades to Ba2 from Baa3 $290 million Howard University revenue bonds, Series 2011 A and 2011 B issued by the District of Columbia.
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Simultaneously, the rating is placed under review for downgrade.
The downgrade to Ba2 reflects the cumulative effect of ongoing losses at both Howard University Hospital and Howard University combined with expected continued pressure on revenue and liquidity management.
Required collateral posting, modest unrestricted liquidity, and reliance on bank lines further support the magnitude of the downgrade.
