S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) three notches to 'B' from 'BB' on Northeastern Illinois University Board of Trustees' outstanding university facilities system (UFS) and certificates of participation (COPS) bonds, issued for Northeastern Illinois University (NEIU). We also placed the ratings on CreditWatch with negative implications.

"The downgrade and CreditWatch status reflect our belief that the state may fail to pass a fiscal 2017 budget by the end of May, which would likely result in zero operating appropriations distributed to the university for the entirety of fiscal 2017," said S&P Global Ratings credit analyst Ashley Ramchandani.

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