Moody's Investors Service said it has downgraded DuPage County School District 12's (Roselle, Ill.) general obligation rating to A2 from A1, and assigned a negative outlook.
The A2 rating and negative outlook applies to $4 million of Moody's rated general obligation limited tax (GOLT) debt.
The A2 rating reflects the district's large reoccurring operating deficits resulting in rapidly declining though still satisfactory reserves; low debt burden that is expected to increase; and a modest tax base that has experienced significant declines in recent years.
The rating also reflects the presence of a designated levy for debt service that is unlimited as to rate and that is projected to provide adequate coverage for GOLT DSEB debt within its yield limit.
