Paulson never would've let this go down on his watch.
Dartmouth College, which was stripped of its triple-A rating this week, is one of the first victims. Both Standard & Poor's Ratings Services and Moody's Investors Service cited investment losses by the Hanover, N.H., school's endowment and significant debt issuance in their decisions to knock Dartmouth's rating down a notch.
For those of you holding your breaths, breathe easy:
Borrowing money doesn't necessarily affect a school's credit rating. This week, for instance, Moody's affirmed Harvard's triple-A status and stable outlook. The ratings firm said despite Harvard's investment declines, which university officials project at 30% for the current fiscal year, it can still count on significant, if reduced, donations and has the ability to boost revenue by admitting more students.
As for the rest of you, better luck next time, and perhaps think about using your heads and trotting out some tasty freshman treats next time the ratings guys show up to perform on-site diligence.
Big Moan On Campus [WSJ]