Standard & Poor's Ratings Services has revised its outlook to negative from stable and affirmed its 'A+' school issuer credit rating (ICR) on Floyd County School District, Ga.'s series 2009 general obligation (GO) special-purpose local-option sales tax (SPLOST) bonds.

"We based the outlook revision on our view of the structural imbalance in the district's general fund, which we understand stems from state aid cuts coupled with rising health care costs," said Standard & Poor's credit analyst Hilary Sutton. "We believe the failure to cure this imbalance will significantly diminish the district's general fund reserves and financial flexibility," said Ms. Sutton.

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