Moody's Investors Service said it has downgraded to Ba2 from Baa1 the underlying rating on Coventry Local School District, Ohio's outstanding general obligation unlimited tax debt and assigned a negative outlook.
Processing Content
The downgrade affects $28.3 million in outstanding GO debt.
The Ba2 reflects the deteriorated financial position of the district that currently has a negative cash position in its general fund with a deficit financing with five-year tax anticipation notes (TANs).
The rating also incorporates the district's modestly-sized tax base that serves a small portion of the city of Akron (Aa3) and neighboring suburban communities; elevated debt burden; and exposure to two underfunded cost-sharing retirement plans.
