ASU responds after another downgrade from Moody's, SACS warning - Montgomery Alabama news.

ASU responds after another downgrade from Moody's, SACS warning

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Alabama State University issued a statement Monday following a downgrade of its credit by Moody's and news that the University is being given a six-month warning by the Southern Association of Colleges and Schools Commission on Colleges.

"Since this is the third downgrade from Moody's for Alabama State University in almost the past nine months, this is a very serious issue," said President Gwendolyn Boyd. "We are committed to turning the tide through the new ASU reorganization plan, fiscal austerity and the implementation of sound financial best practices to restore our University's credit rating.

Moody's Investors Service announced the downgrade on July 3 of ASU's general tuition and fee revenue bond rate to a Ba1 from Baa1, and downgraged the Series 2005 lease revenue bonds to Ba2 from Baa2. The service has a negative outlook on ASU.

Read more from Moody's on its decision. [HERE]

The warning from SACSCOC comes as the accreditation agency says ASU, "has failed to demonstrate compliance with Core Requirement 2.2 (Governing board), Comprehensive Standard 3.2.3 (Board conflict of interest), Comprehensive Standard 3.10.4 (Control of sponsored research/external funds) and Federal Requirement 4.7 (Title IV program responsibilities) of the Principles of Accreditation."

"I am committed to full transparency and total cooperation with the SACSCOC site committee visit on any questions or issues they have," President Boyd said. "We welcome the involvement of the accrediting body to make us stronger. We look forward to the visit of their representatives and total resolution of these matters within the six months that the university is under this warning."

President Boyd added that while there is an accreditation warning in effect, "The academic integrity of Alabama State University is not in question."

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