BUTLER TWP — Butler County Community College this week received a downgraded credit rating from a Wall Street ratings agency, which will cause BC3 leaders to take out higher costing bonds and loans for projects.

Moody’s Investor’s Service downgraded the college by two levels, from an A1 to an A3 rating.

The service’s report released Tuesday cited both college finance issues and the state’s continuing budget impasse since BC3 is heavily reliant on state funds for this change in the credit rating.

“We’ve had two years in a row of operating deficits, and it’s really a lack of enrollment for us. And we haven’t been meeting enrollment targets,” said Jim Hrabosky, vice president of administration and finance.

At a college trustees meeting last week, a $3 million line of credit was discussed to be used in place of the state money that BC3 has not been receiving. Trustees could vote on that loan as soon as next month.

Hrabosky said that wouldn’t make obtaining the line of credit more difficult, since the college has a good working relationship with its bank. However, it could elevate interest rates.

“We’re still an A grade,” he said. “We’re still considered an investment grade. We’ve kind of moved down the ladder.”

Moody’s Investor’s Service also downgraded the Community College of Allegheny County and the Community College of Philadelphia.