Moody's Investors Service said it has downgraded to A1 from Aa2 the rating on Grandville Public Schools, Mich.

Concurrently, the A1 rating has been assigned to the district's $15 million 2013 school building and site bonds, Series I. The A1 rating applies to $23.9 million of outstanding general obligation debt, post-sale.

The new bonds are secured by the district's general obligation unlimited tax pledge. Authorized by voters in May 2013, the bonds represent the first of three expected phases of borrowing for capital and technology purposes, with a total borrowing of $75 million expected through 2019.

The downgrade to A1 reflects the district's narrowing general fund reserves which are estimated to end fiscal 2013 at narrow levels. Also incorporated in to the A1 rating is the district's large tax base located just west of the city of Grand Rapids (GOLT rated Aa2/stable outlook); declining enrollment trends; slightly above average socioeconomic profile; and below average debt levels expected to increase with the recently authorized borrowing capacity.

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