Moody's Investors Service said it has downgraded Frazier School District, Pa.'s outstanding general obligation debt to Baa3 from Baa1.
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Concurrently, it downgraded the district's enhanced rating to Baa1 from A2. The outlook on both ratings is negative. The rating actions affect approximately $25 million of rated debt.
The downgrade to Baa3 reflects continued structural imbalance resulting in negative fund balance, giving the district limited near-term financial flexibility. The rating also incorporates the district's high debt burden, limited tax base and weak socioeconomic profile. The Baa1 enhanced rating reflects additional security provided by the state's post-default enhancement program under Act 150.
