Moody's Investors Service said it has downgraded Farmington Public School District, Mich.'s general obligation rating to Aa3 from Aa2.
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Concurrently, Moody's has assigned a Aa3 rating to the district's $79.8 million GO school building and site and refunding bonds, Series 2015.
Post-sale, the district will have $95 million of rated GO debt outstanding. The outlook remains negative.
The Aa3 rating reflects the district's narrowing reserve position with a significant projected operating deficit for 2015. The Aa3 rating also incorporates the district's large and wealthy tax base, manageable debt burden that is expected to increase, and above average pension liabilities.
