Standard & Poor's Ratings Services said it lowered its underlying rating for credit program to A from A-plus on Bemidji Independent School District No. 31, Minn.'s general obligation bonds.
The outlook is stable.
"The rating change reflects our opinion of the district's reduced reserve levels, following an unbudgeted deficit in fiscal 2014, and likely further reduced available fund balance as a result of a probable deficit for fiscal 2015," said Standard & Poor's credit analyst Benjamin Gallovic.
The stable outlook on the underlying rating for credit program reflects the view that the district's recently approved local option revenue and expenditure reductions will be sufficient to balance the district's operations, allowing it to maintain adequate reserves in the next two years.
