Moody's Investors Service said it has downgraded to A3 from A1 the underlying rating on East Cleveland City School District, Ohio's outstanding general obligation unlimited tax debt.
Processing Content
The bonds are secured by the district's authorization and pledge to levy a tax unlimited as to both rate and amount to pay debt service.
The A3 underlying rating reflects the district's sharply deteriorating financial position following multiple consecutive operating deficits resulting in drawdowns of reserves. The rating also incorporates the district's limited tax base, weak socio-economic profile, and high unfunded pension obligations.
