Fitch Ratings has downgraded $3.3 million of unlimited-tax general obligation bonds issued by Claymont City School District to A-plus from AA-minus and revised the outlook to negative from stable.
The rating action reflects the district’s three years of deficits, depletion of reserves and the uncertainty of future state funding.
Claymont School District is located about 60 miles from Akron in a largely residential district that suffers from a weak economy, according to analysts.
Aid from Ohio makes up 75% of operating revenue, and the district is expected to continue to suffer serious fiscal problems as state support declines.
To help offset the expected state aid cut, the district plans to put an emergency levy on the November 2011 ballot — a measure that voters defeated last November.