Moody's Investors Service said it has downgraded to A2 from A1 the rating on Columbia Local School District, Ohio's general obligation debt.
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The downgrade applies to $6 million of rated debt. The bonds are backed by the district's general obligation unlimited tax pledge.
The downgrade to A2 reflects a material weakening of liquidity and reserve levels as a result of sizeable operating deficits generated by the district from fiscal 2008 through fiscal 2012.
The A2 rating also reflects the district's strong socioeconomic profile, below average debt burden, limited, though stable, tax base, and long term risks posed by exposure to underfund cost-sharing pension plans.
