Standard & Poor's Ratings Services said it lowered its underlying rating on Cook County Township High School District No. 205 (Thornton), Ill.'s series 2008 general obligation limited school bonds to A-plus from AA-minus.
The outlook is stable.
"The rating revision is based on weakened economic indicators, including lower wealth and income assessments and declining enrollment, some of which are directly affecting the budget," said Standard & Poor's credit analyst John Sauter. It also reflects a decrease in available reserves as a result of ongoing budget pressure.
"The A-plus rating also reflects our view of the district's rapid debt amortization and low debt service carrying charges," he added.
Other factors include its: participation in the deep and diverse Chicago metropolitan area economy; and available cash reserves that remain strong, as measured on a cash basis of accounting, despite the declining trend.
Offsetting credit factors include the district's adequate yet below-average incomes, low market value per capita, and continued budget pressure.
