Moody's Investors Service said it has downgraded to A2 from Aa3 the underlying general obligation rating of Lakeview Public School District (Macomb County), Mich.
The district's general obligation unlimited tax debt is secured by a property tax pledge, as authorized by voters, unlimited as to rate or amount to pay debt service on outstanding bonds. The district has a total of $34.1 million of general obligation unlimited tax debt, $14.6 million of which is rated by Moody's.
The A2 primarily reflects the district's narrow reserve position following consecutive years of operational imbalance, limited budgetary flexibility, and elevated debt burden.
Also incorporated into the A2 rating are the district's modestly sized tax base that has experienced rapid depreciation, positive enrollment trend, average socioeconomic profile and long term operating risk posed by exposure to an underfunded cost-sharing retirement plan.
