Lake County School District 38, Ill., Downgraded to Baa3 by Moody's

Published April 07, 2015, 2:56 p.m. EDT

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Moody's Investors Service said it downgrades Lake County School District #38 (Big Hollow), Ill.'s general obligation rating to Baa3 from A2.

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Concurrently, a negative outlook has been assigned. The Baa3 rating applies to $7.3 million Moody's rated GO debt outstanding.

The Baa3 GO rating reflects the district's structurally imbalanced operations which has led to a diminished liquidity position in the General Fund. Also incorporated in the rating is the district's modestly sized tax base experiencing depreciation; increased reliance on tax anticipation warrants (TAWs) to support general operations; and an elevated debt burden with rapid principal amortization.

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