Moody's Investors Services said it downgraded the ratings on Copper Mountain Community College District, Calif.'s general obligation bonds to A1 from Aa3.
The downgrade reflects the district's weakened finances, characterized by its negative net cash position in fiscal 2013 and a 57% decline in its unrestricted general fund balance over the last four fiscal years.
This financial pressure, in concert with the district's comparatively modest tax base and weak socioeconomic indicators, drove the change in the rating.
Moody's expects the rating to stabilize at the A1 level, given the recent reaffirmation of the district's accreditation status with no outstanding sanctions. The clean bill of health from the district's accreditor, combined with access to unrestricted gift funds in the district's foundation, helps support the A1 rating.