Standard & Poor's dropped the rating on Rutgers University's general obligation debt to AA-minus from AA, citing risks associated with the planned merger with University of Medicine & Dentistry of New Jersey.

S&P expects Rutgers to have $1.7 billion in outstanding debt after the merger is completed on July 1. This includes the sale of an $878 million bond planned for June 12 or 13, of which $733.4 million will be refunding.

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