S&P Global Ratings has affirmed and placed on CreditWatch with negative implications its 'A' long-term rating on Illinois State University Board of Trustees' series 2016 auxiliary facilities system (AFS) revenue bonds. In addition, we affirmed our 'A' long-term rating and underlying rating (SPUR) on existing bonds and certificates of participation (COPs), issued on behalf of Illinois State University (ISU).

"The CreditWatch Negative status reflects 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. We understand that to date, the university has not received any additional state appropriations for fiscal 2017 beyond the $38.3 million of stop-gap funding that was approved on June 30, 2016, and that receipt of such appropriations is contingent on the passage of a state budget.

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