NEW YORK - Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Forest Grove School District No. 15, Ore.'s $31.8 million of unlimited tax general obligation debt.

The downgrade to A1 from Aa3 reflects the district's weakened financial position due to five straight years of draws on general fund reserves.

The resulting low fund balance positions the district poorly to deal with any future losses of revenue or unforeseen expenditures. The rating also factors in the district's close proximity to the Portland metro area, average socioeconomic measures and above average debt levels.

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