Standard & Poor's Ratings Services said it lowered its underlying rating to A-minus from A on Chawanakee Unified School District, Calif.'s general obligation bonds outstanding and lowered its rating to BBB-plus from A-minus on the district's certificates of participation outstanding.
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In addition, Standard & Poor's assigned its A-minus rating to the district's series 2015 GO refunding bonds. The outlook on all ratings is negative.
"The lowered ratings are due to our view of the district's continued imbalanced operations and reliance on reserves, which resulted in a negative assigned and unassigned general fund balance position in fiscal 2014," said Standard & Poor's credit analyst Bryan Moore.
