NEW YORK - Moody's Investors Service has downgraded to A1 from Aa3 the underlying rating on Geneva Area City School District, Ohio's general obligation debt in conjunction with the district's sale of $15.1 million general obligation unlimited tax school improvement refunding bonds, Series 2012.
Post-sale, the district will have $18.6 million of general obligation unlimited tax debt outstanding.
Debt service on the bonds is secured by the district's general obligation unlimited tax pledge. Proceeds will be used to advance refund a portion of the district's school improvement bonds, Series 2003, for expected interest savings.
The downgrade to the A1 underlying rating reflects the district's narrow financial position with recent operating levy failure; moderately-sized tax base with a declining demographic profile and a high unemployment rate that exceeds both state and national figures; and manageable debt profile with no near-term borrowing plans.