Moody's Investors Service said it has downgraded the rating on Washoe County School District, Nev.'s outstanding general obligation debt to Aa3 from Aa2.
Moody's assigned a Aa3 rating to Washoe's general obligation (limited tax) refunding bonds, Series 2013.
The rating outlook on the district's long term rating has been revised to stable from negative.
The newly issued bonds are secured by the full faith and credit of the district within the constitutional and statutory limitations of the district's operating and debt service levies. The bonds are being issued to advance refund a portion of the district's outstanding debt for the purpose of debt service savings.
The downgrade reflects the district's somewhat weakened financial health as a result of two consecutive years of draws on general fund reserves due to structural imbalance.
The rating also takes into account the district's sizeable tax base, above average socioeconomic indicators, and strong management. The stable outlook represents Moody's belief that the district's general fund reserves will remain at a level that, when combined with its other credit characteristics, will place the district well in comparison to other Aa3 rated school districts for several years.
