Moody's Investors Service said it has downgraded to A3 from A2 the underlying general obligation rating of Marlette Community School District, Mich.
The district's general obligation unlimited tax (GOULT) debt is secured by a property tax pledge as authorized by voters, unlimited as to rate or amount to pay debt service on outstanding bonds.
As of June 30, 2014, the district had $5.8 million of outstanding GO debt, $5.4 million of which is rated by Moody's.
The downgrade reflects the district's diminished operating reserve position and ongoing trend of declining enrollment.
Additionally, the A3 incorporates the district's low debt burden, small tax base, below average socioeconomic traits and long term risk posed by exposure to an underfunded retirement plan as well as a new management team that has made tangible budgetary adjustments.
