Moody’s Investors Service has downgraded to Baa1 from A3 its rating on the Brighton Area School District and maintained its negative outlook, warning that the Michigan district is facing financial pressures and a significant general fund deficit.
The district has $94 million of outstanding general obligation bonds.
“The negative outlook reflects our belief that the district will struggle to achieve a positive general-fund position in the near term due to enrollment declines, state funding pressures, and the likelihood that the district’s deficit elimination plan will not provide a workable solution within the originally projected timeline,” Moody’s said Monday in its downgrade report.
In January, the district asked the state for permission to put an $88 million bond issue on the May ballot. Proceeds would finance the renovation of existing buildings as well as new athletic facilities and other projects.