Moody's Investors Service said it has downgraded to A3 from A1 the rating on Fenton Area Public Schools, Mich.'s general obligation unlimited tax debt.
A negative outlook has been assigned. The A3 rating and negative outlook applies to $20.6M of rated GOULT debt.
The A3 rating reflects the district's recent operating deficits resulting in a narrow fund position, elevated debt burden and increased cash flow borrowing. Also included in the rating is the district's moderately sized tax base with recent growth.