Fitch Cuts Kettering, Ohio, Schools to AA-Minus

Fitch Ratings downgraded to AA-minus from AA the Kettering, Ohio, City School District’s $16.9 million of Series 2003 unlimited-tax general obligation bonds, and $1.5 million of Series 2004 unlimited-tax GOs.

The outlook is stable.

The downgrade reflects erosion in financial reserves and Fitch’s expectation that the constrained operating environment will make meaningful improvement in reserves difficult.

Uncertainty regarding future state funding may further pressure the district’s financial position.

Concerns about financial flexibility are somewhat offset by strong voter support for levies, including the recent approval of a new levy.

The debt burden is moderate with no future debt plans in the near term. The local economy shows signs of ­stabilization.

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