Moody's Investors Service said it has downgraded the underlying rating on Chippewa Valley Schools, Mich.'s outstanding general obligation unlimited tax debt to Aa3 from Aa2.
The Aa3 underlying rating applies to $255.4 million of outstanding general obligation debt.
The district's rated debt is secured by the district's general obligation unlimited tax pledge, as authorized by voters. The district has a total of $340.7 million of debt outstanding. The negative outlook has been removed.
The Aa3 rating reflects the district's large tax base with above average socioeconomic indices, consistent enrollment growth, and very high debt burden. Also incorporated in the rating are the district's satisfactory financial position, limited revenue raising ability and long term risk posed by exposure to an underfunded cost-sharing pension plan.
