Grosse Pointe Public Schools, Mich., Downgraded to Aa3 by Moody's

Moody's Investors Service said it has downgraded Grosse Pointe Public Schools, Mich.'s outstanding general obligation unlimited tax debt to Aa3 from Aa2.

The Aa3 rating affects $45.5 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 negative outlook has been removed.

The Aa3 rating reflects recent operating deficits that have resulted in a very narrow financial position.

The rating also incorporates the district's large tax base with substantial recent declines, above average socioeconomic indices, manageable debt burden and long term risks posed by exposure to an underfunded cost-sharing retirement plan.

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