Moody's downgraded Howard University's credit rating Tuesday.
Moody’s blames it in part on weak fundraising and federal budget cuts.
Howard relies on $250 million dollars a year from the government.
The university is also dealing with a drop in student numbers following stricter loan standards.
Moody's also says expenses at Howard University Hospital are putting a strain on the rest of the school.
In April, a trustee wrote a letter to board members saying the university could shut its doors within three years due to mismanagement and financial problems.