Moody's Investors Service said it has downgraded DeKalb & Kane County Community Unit School District 427 (Sycamore), Ill.'s general obligation rating to A1 from Aa3.
Concurrently, Moody's has assigned an A1 rating to the district's general obligation school bonds, Series 2015. Post-sale, the district will have $60.2 million of general obligation unlimited tax and general obligation limited tax debt outstanding, of which $23.4 million is rated by Moody's.
The A1 rating reflects the district's adequate but narrowing financial operations; moderately-sized, depreciating tax base in north-central Illinois (A3 negative); above average socioeconomic profile; elevated debt profile with a below average amortization schedule; and exposure to unfunded pension liabilities.
The lack of a rating distinction between the district's GOLT and GOULT debt is due to the presence of a dedicated levy that is limited by the district's debt service extension base (DSEB) but not by rate, which is expected to provide sufficient coverage for scheduled debt service.
