Moody’s Investors Service has revised its outlook for Alabama State University’s A2 rating to negative from stable due to concerns about its increasingly leveraged balance sheet and limited growth in financial resources as the current economic climate undermines its traditional level of state support.

“The outlook change also reflects the university’s debt portfolio with outstanding auction-rate bonds, a swap agreement, and a swaption that could be exercised by the counterparty within the next two years,” said a report by Moody’s analyst Amy Tanaka.

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