Standard & Poor's Ratings Services said it lowered its issuer credit rating to A-minus from A on La Marque Independent School District, Texas' existing general obligation debt.
The outlook is negative.
At the same time, Standard & Poor's affirmed its AAA long-term rating on the district's existing bonds guaranteed by the Texas Permanent School Fund. The AAA program rating reflects the strength and stability of the Texas Permanent School Fund's guarantee. The outlook on the long-term ratings is stable.
"The lowered rating reflects our view of the district's declining enrollment and recent drawdowns of operating reserves and structural imbalances," said Standard & Poor's credit analyst Kate Choban. "We could lower the rating during the next two years if the district is unable to achieve structural balance operations by end of fiscal 2014 as projected by the officials," Choban added.
La Marque Independent School District (ISD), with an estimated population of 20,840, is located 40 miles southeast of downtown Houston, Texas.
