Moody's Investors Service said it has downgraded Butler County USD 375, Kan.'s general obligation rating to A2 from A1.
Concurrently, Moody's has assigned an A2 to the district's $22.4 million general obligation refunding and improvement bonds, Series 2014.
The bonds are secured by the district's general obligation unlimited tax (GOULT) pledge which benefits from a dedicated property tax levy not limited by rate or amount. The proceeds will be used to refund a portion of the district's outstanding debt, as well as finance the construction of a new high school and other renovations at district facilities. Post-sale, the district will have $62.1 million of GO debt outstanding.
The A2 rating reflects the district's modestly sized tax base that benefits from its proximity to the city of Wichita; above average socioeconomic indices; satisfactory financial operations with draws to its already modest reserves; increasing enrollment; an elevated debt burden and absence of net pension liabilities.
