Standard & Poor's Ratings Services said it lowered to A from A-plus its long-term rating and underlying rating (SPUR) on Lee & DeKalb County Community Unit School District No. 271, Ill.'s outstanding general obligation (GO) bonds.
The outlook is negative.
"The downgrade is due to an ongoing imbalance in the district's combined education and operations and maintenance funds," said Standard & Poor's credit analyst Anna Uboytseva. "The imbalance is likely to continue despite the district's cost-reduction and levy realignment measures."
The district's unlimited-tax GO pledge secures the bonds.
The district serves an estimated population of 1,600 in Lee and DeKalb Counties, and is located about 21 miles south of Rochelle and 75 miles west of Chicago.
