Standard & Poor's Ratings Services said it has lowered its long-term rating on Tripoli Community School District, Iowa's series 2012 general obligation school bonds one notch to A from A-plus.
The outlook is stable.
"The downgrade reflects our opinion of the district's adequate reserve position after consecutive drawdowns in fiscal years 2013 and 2014, driven by a reduced state aid revenue environment with no offsetting expenditure adjustments," said Standard & Poor's credit analyst Timothy Daley.
At the same time, it believes the district's financial performance and position could stabilize in fiscal years 2015 and 2016 due to revenue and expenditure adjustments within the budget.
