Moody's Investors Service said it has completed its review and downgraded to Aa3 from Aa2 the rating on Oak Hills Local School District (Hamilton County), Ohio's outstanding rated general obligation unlimited tax debt.
The district has $33.9 million of outstanding general obligation debt, $6.1 million of which is rated by Moody's.
The district's Moody's-rated debt (general obligation bonds, Series 1997) is secured by the district's general obligation unlimited tax pledge, as authorized by voters.
The downgrade to Aa3 reflects the district's exposure to two statewide multi-employer cost-sharing pension plans; a moderately-sized and primarily residential tax base within commuting distance of Cincinnati (GO rated Aa1/RUR — down); healthy reserve position despite recent operating deficits; and manageable debt burden.
The district's rating was placed on review for downgrade due to its large adjusted net pension liability relative to its rating category as part of our new approach to analyzing state and local government pension liabilities.
The review was completed with the downgrade to Aa3, and the Aa3 rating incorporates the district's sizeable adjusted net pension liability as well as the district's other long-term credit fundamentals.
