Standard & Poor's Ratings Services said it lowered its long-term and underlying ratings to A-plus from AA-minus on Fayette County Board of Education, Ky.'s existing debt, issued by the Fayette County School District Finance Corp.
At the same time, Standard & Poor's assigned its A-plus long-term rating to the corporation's series 2014A school building revenue bonds, issued for the board. The outlook is stable.
"The lowered ratings reflect our view of the district's larger than anticipated deficit in 2013 and its expected deficit in 2014, despite it currently reporting what we deem a strong level of reserves," said Standard & Poor's credit analyst Helen Samuelson. "The stable outlook reflects our expectation that district officials will take meaningful action to structure a balanced 2015 budget and to maintain reserves in keeping with its 5% fund balance target," Samuelson added.
