NEW YORK - Moody's Investors Service said it downgrades Haverford Township School District, Pa.'s long term rating to A1 from Aa2. The downgrade affects $113.1 million in previously rated outstanding general obligation debt.
The downgrade is based on the district's narrow financial position following large operating deficits in fiscal 2009 and 2010. The A1 underlying rating reflects the district's moderately sized tax base with above average wealth levels and high debt burden with significant variable rate and swap exposure. The negative outlook reflects the district's challenges to regain structural balance despite increasing the tax levy above the index and making expenditure reductions.