Shelby Eastern Schools, Ind., Downgraded to A-Plus by S&P

Standard & Poor's Ratings Services said it lowered its school issuer credit rating on Shelby Eastern Schools, Ind., to A-plus from AA-minus.

"The downgrade reflects consistent administrative turnover, leading to our view of poor spending decisions, and ultimately a reduced available cash balance," said Standard & Poor's credit analyst John Sauter.

At the same time, Standard & Poor's affirmed its AA-plus long-term rating on Shelby Eastern Schools Building Corp., based on the school corporation meeting the Indiana State Aid Intercept program rating criteria. The credit characteristics of the rating are supported by the availability of state aid to be intercepted to cover debt service payments. The outlook on all the ratings is stable.

"The A-plus school ICR also reflects our opinion of the school corporation's delayed focus on expenditure controls due to frequent management turnover," said Sauter, "along with declining enrollment."

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