Moody's Investors Service said it downgraded to A1 from Aa3 the issuer rating of Antioch Unified School District, Calif., and downgraded to A1 from Aa3 the rating of Antioch Unified School District's School Facilities Improvement District (SFID).
The affected debt is $65.8 million of general obligation bonds issued by the SFID. A negative outlook has been assigned to the both of the district's ratings.
The downgrade reflects the district's weakened financial position evidenced by large operating deficits, resulting in significant draw down in fund balance levels and weak liquidity position.
The rating also incorporates the district's moderately sized tax base which appears to have stabilized, as well as debt and pension burdens that are low relative to similarly rated California school districts.
The district has, average wealth levels and a below average principal amortization rate, while still facing declining enrollment levels.
