Fruitport Community Schools, Mich., Downgraded to A2 by Moody's

Moody's Investors Service said it has downgraded to A2 from Aa3 the rating on Fruitport Community Schools, Mich.'s outstanding rated general obligation debt.

The A2 rating applies to $19.8 million of outstanding general obligation unlimited tax debt.

The district's outstanding long term bonded debt is secured by its general obligation unlimited tax pledge. The downgrade to the A2 rating reflects the district's narrowing general fund reserves which have been negatively pressured by declining enrollment levels and the district's exposure to a statewide multi-employer cost sharing pension plan.

Also incorporated in the rating is the district's moderately-sized tax base in western Michigan (GO rated Aa2/positive outlook), its slightly below average socioeconomic characteristics, and average 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 A2, and the A2 rating incorporates the district's sizeable adjusted net pension liability as well as the district's other long-term credit fundamentals

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