Moody's Investors Service said it has downgraded to A1 from Aa3 the underlying rating on the Beloit School District, Wis.'s general obligation debt, which totaled $75.2 million at the close of fiscal 2013.
Debt service on the bonds is secured by the district's general obligation unlimited tax pledge which is not limited by rate or amount.
The downgrade to A1 reflects the district's high debt burden that is not expected to moderate significantly in the medium term due to continued tax base declines as well as an unbudgeted draw on reserves in fiscal 2013.
The A1 rating also reflects the district's moderately sized, concentrated, and declining tax base with a weak demographic profile, satisfactory financial profile with strong management, and a manageable pension and OPEB burden.
