Standard & Poor's Ratings Services said it lowered to A from A-plus its long-term rating and underlying rating on Livonia Public Schools District, Mich.'s outstanding general obligation bonds.
In addition, the agency assigned its A long-term rating to the district's series 2013 unlimited-tax general obligation school building and site bonds and series 2013 unlimited-tax GO refunding bonds (taxable). The outlook is stable.
"The downgrade is due to management's projections that the general fund balance level will decline significantly in fiscal 2013 and fiscal 2014, leaving only low available general fund reserves, in our view," said Standard & Poor's credit analyst Caroline West. "An additional negative rating factor is the district's declining enrollment trend, which is directly tied to state aid," West added.
Livonia Public Schools District serves an estimated population of 114,464 in Wayne County and is located near Detroit. The district encompasses a 39-mile area, including nearly all of Livonia and a small portion of the cty of Westland.
