NEW YORK - Moody's Investors Service said it has downgraded to A2 from A1 the general obligation bond rating for Cotati-Rohnert Park Unified School District, Calif. The outlook on the rating is negative.
The downgrade reflects the continued deterioration of the district's financial position, with projected deficits in fiscal 2012 and fiscal 2013 expected to apply substantial additional pressure to the district's finances.
The district continues to experience considerable cash flow deficiencies resulting in reliance on inter-fund and third-party sources for liquidity.
The district's low levels of cash and reserves significantly limit its flexibility to manage ongoing state funding pressures and other unanticipated stresses.
The negative outlook reflects the potential for material near-term pressures applied to the district's finances, and the uncertain ability and willingness of the district to enact solutions sufficient to maintain fiscal balance and mitigate further deterioration.