Standard & Poor's Ratings Services said it has lowered its long-term rating to A-plus from AA-minus on Madison Central School District No. 39-2, S.D.'s limited-tax capital outlay certificates.

At the same time, Standard & Poor's assigned the A-plus long-term rating to the district's series 2012 limited tax capital outlay certificates. The outlook is stable.

"The downgrade reflects lowered coverage of debt service provided by the pledged revenue although it is still at a level we consider strong," said Standard & Poor's credit analyst Kathryn Clayton.

Madison Central School District No. 39-2 will use the certificate proceeds to finance renovations and additions primarily at the district's middle and high school facilities.

The district has pledged its power to levy direct general ad valorem property taxes, subject to the limitation on the ad valorem property tax levy in any year, for the payment of the certificates and other capital outlay fund purposes. These taxes may not exceed $3 per $1,000 of AV under South Dakota law to pay debt issued under the capital outlay fund.

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