Standard & Poor's Ratings Services said it lowered its issuer credit rating one notch to AA-minus from AA on Homewood Public Library District, Ill.
Standard & Poor's also lowered its long-term rating on the district's previously issued debt certificates to A-plus from AA-minus.
The outlook is stable for all ratings.
"The downgrade is due to five consecutive audited years of operating deficits and projected drawdowns in reserves for 2015 and 2016," said Standard & Poor's credit analyst Ruth Ducret.
The rating on the debt certificates is one notch lower than the ICR because of the limited nature of the security. The debt certificates are a direct general obligation of the district, payable from any funds legally available to it.
However, the certificates are not secured by the district's full faith and credit pledge.
Homewood Public Library District serves an estimated population of 19,575 in Cook County and is located 25 miles south of Chicago.
