Gooding CSD 232, Idaho, Downgraded to Ba1 by Moody's

Moody's Investors Service said it downgrades to Ba1 from Baa1 the general obligation rating of Gooding County School District No. 232 (Wendell), Idaho; bonds are outstanding in the amount of $12.05 million.

Further, Moody's applies a negative outlook to the rating. The district's full faith and credit and unlimited property tax pledge secures the bonds.

A key driver of the district's Ba1 rating is its persistent fiscal imbalance stemming from weak budgetary management and reflected in low reserves and a weak liquidity position. Also taken into account in the rating are the district's small though stable tax base with high agricultural taxpayer concentration and its high debt burden.

The rating outlook is negative, reflecting uncertainty about the district's budgeting practices and future year projections; uncertainty about whether it will receive additional levy dollars to relieve operating expenses; and lack of cash flow projections for future years.

 

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