CHICAGO — The Illinois Institute of Technology is in danger of losing its investment-grade level rating from Moody’s Investors Service as it struggles with operating deficits that have forced draws on its endowment and bank lines to cover debt service and other obligations.

Moody’s late last week lowered the rating on the private Chicago university’s $190 million of direct debt to Baa3 — the lowest investment-grade level — from Baa2 and placed the rating on watch for another possible downgrade.

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