Holt Public Schools, Mich., Downgraded to A1 by Moody's

Moody's Investors Service said it has downgraded to A1 from Aa3 the general obligation rating of Holt Public Schools, Mich.

The district has $79.2 million of GO debt, of which $18.6 million is Moody's rated. Concurrently, a negative outlook has been assigned.

The district's outstanding GO debt is secured by the district's unlimited tax pledge as authorized by voters.

The downgrade to A1 reflects the district's adequate financials, which, though declining, are supported by forward looking management that continues to make long-term plans for expenditure reductions to offset limited revenue raising flexibility; above average debt burden; a moderately sized tax base and average demographic profile. that benefits from its location in the Lansing metropolitan area.

The negative outlook is based on the potential for the district's reserves to narrow significantly and risks associated with the district's variable rate debt and related derivatives.

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