Moody's Investors Service said it has downgraded to Aa3 from Aa2, the Caddo Parish Parishwide School District and School Board, La.'s general obligation bonds.
The bonds are secured by an annual levy and collection of unlimited ad valorem taxes on all taxable property within the boundaries of the district. The district has a total of $97.1 million of general obligation unlimited tax debt outstanding, $67.5 million of which is rated by Moody's.
The downgrade to Aa3 reflects the district's challenged financial operations as demonstrated through multiple years of operating deficits coupled with declines in sales tax revenues, as well as the large pension and OPEB liability relative to its peers and rating category which will continue to present budgetary challenges for the district in the future.
The rating also incorporates the district's large, stable tax base, as well as the moderate debt burden.
