Moody's Investors Service said it has downgraded to A2 from A1 the rating on Louisville City School District, Ohio's outstanding general obligation debt.
Concurrently, the negative outlook on the district's GO debt has been removed. The A2 rating applies to $27.9 million of outstanding general obligation unlimited tax debt.
The downgrade to A2 reflects several years of declines in the district's general fund cash reserves which are expected to stabilize following the passage of a new levy at a level consistent with the A2 rating category.
Also incorporated in the rating is the district's moderately sized, residential tax base located east of Canton (A1/no outlook) with average socioeconomic characteristics; elevated debt burden; and above average exposure to unfunded pension liabilities based on its participation in two state-wide cost-sharing plans.
