Amid an ongoing budget crisis, Wright State University’s credit ranking has been downgraded.

Moody’s Investors Services dropped the school’s rating from A2 to Baa2, signifying a “negative outlook.” The organization says the downgrade was prompted by Wright State’s deteriorating financial situation and significant operating deficits.

The new rating could affect Wright State’s ability to secure loans for large projects, such as new construction.

The University is projected to overspend its budget this year by about $40 million. The school has made cuts to programming and laid off faculty and staff members in response to the budget crunch.

Wright State’s interim President Curtis McCray has said further layoffs and cuts are imminent.