On what basis? The moral credit of Penn State may be shot but no one is questioning its financial credit, certainly not if it has the State of Pennsylvania to back it up.
Lawsuits. Multiple ones. With payouts in the multi-million $ range. I’d short their bonds yesterday.
PSU shouldn’t worry too much about Moody’s... if things get ugly Obama and Duncan and the taxpayer will bail them out.
How many victims are there? In an ideal world the money would come out of the Athletic Department only, and IF there is any money left over, then scholarships may be awarded.
There’s your self-imposed death penalty.