Standard & Poor's Ratings Services said it lowered its school issuer credit rating (ICR) to A-plus from AA-minus on East Grand Rapids Public Schools, Mich.
The outlook is negative. At the same time, Standard & Poor's revised its outlook to stable from positive and affirmed its A-plus underlying rating (SPUR) on the district's existing general obligation (GO) debt.
Finally, Standard & Poor's assigned its A-plus ICR and AA-minus long-term program rating to the district's 2014 unlimited-tax general obligation (GO) refunding bonds, series A and series B. The outlook on the ICR is negative and the outlook on the program rating is stable.
"The lowered rating on the ICR reflects our view of the district's finances trending worse than expected in fiscal 2014 and 2015," said Standard & Poor's credit analyst Helen Samuelson.
Management will use series A bond proceeds to refund series 2006 debt for interest cost savings. Management will use the series B bond proceeds to refinance its nearly $20 million school bond loan fund borrowing for interest cost savings.
The district, which covers 3.7 square miles, is a mature, affluent residential community and serves the residents of East Grand Rapids and a portion of Grand Rapids Township in Kent County. Residents have access to employment opportunities in Grand Rapids and throughout Kent County.
