Moody's Investors Service said it has downgraded Chippewa Hills School District, Mich.'s general obligation rating to A2 from A1.
Concurrently, Moody's has assigned an A2 underlying rating and a Aa2 enhanced rating to the district's 2015 school building and site bonds, Series I (general obligation - unlimited tax). Post-sale the district will have $13.3 million of rated GO unlimited tax debt. The underlying outlook remains negative.
The A2 underlying rating reflects the district's moderately sized tax base with below average resident income indices; narrowing reserve position; limited budgetary flexibility; and manageable debt burden.
The Aa2 enhanced rating is based on the SBQLP rating of Aa2. The programmatic rating is based on the sound program mechanics and the strength of the state's GO credit quality, currently rated Aa2 with a positive outlook.
