Moody's Investors Service said it has downgraded Lewiston-Porter Central School District, N.Y., to A2 from A1 affecting approximately $26.7 million in general obligation debt.
Concurrently, the outlook remains negative.
The bonds are secured by the district's general obligation tax pledge, limited by the Property Tax Cap Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011.
The downgrade to A2 reflects the district's deteriorating financial position with reserve levels falling considerably in fiscal 2011. The A1 rating also incorporates the district's moderately sized tax base with above average wealth and income levels and manageable debt burden. The negative outlook reflects our belief that it will be difficult for the district to achieve structural balance in the near term given its growing fixed costs and limited revenue raising flexibility.
