Moody's Investors Service said it has downgraded to A2 from A1 the rating on Gobles Public School, Mich.'s general obligation bonds.
The debt is secured by an unlimited tax pledge of the district. The district has $6.8 million of rated general obligation unlimited tax debt outstanding. An additional $2.0 million of unrated general obligation debt is also outstanding.
The downgrade reflects the district's weakened financial position following five consecutive draws on reserves and an above average direct debt burden that is expected to increase. The A2 rating also incorporates a modestly sized tax base, average resident wealth and income levels, and an above average pension liability.