Moody's Investors Service said it has downgraded to A2 from Aa3 the underlying general obligation rating of Grosse Ile Township School District, Mich.
The district's general obligation unlimited tax debt is secured by the district's pledge and authorization to levy a tax unlimited as to rate or amount to pay debt service. This district has a total of $24 million of outstanding general obligation debt.
The A2 rating reflects the district's structurally imbalanced operations that have resulted in a narrow general fund reserve position. Also incorporated in the rating is the district's moderately sized tax base with above average wealth levels, Michigan's weak institutional framework for school districts that limits revenue raising flexibility, an above average direct debt burden and long term risks posed by exposure to an underfunded cost-sharing retirement plan.
