Moody’s Investors Service downgraded to A2 from Aa3 the Becker, Minn., Independent School District 726’s long-term underlying general obligation rating, affecting $19.9 million of rated outstanding debt secured by the district’s GO unlimited-tax pledge. The district has $22.9 million of GO debt outstanding.
The downgrade reflects the deterioration of the ISD’s financial position and liquidity following several years of general fund operating deficits, limited revenue raising flexibility, and regular use of general fund reserves to support ongoing operations.
