Standard & Poor's Ratings Services said it lowered its long-term rating on Madison and Jersey Counties Community Unit School District No. 11 (Alton), Ill.'s existing general obligation (GO) school bonds to A from A-plus.
At the same time, it assigned its A long-term rating to the district's series 2014 taxable GO school bonds. The outlook is stable.
"The rating revision is based on an ongoing budget imbalance in the district's education fund, which is likely to continue despite recent and planned future spending reductions," said Standard & Poor's credit analyst John Sauter. While available reserves will temporarily increase due to the influx of the series 2014 bond proceeds, they should begin falling again in fiscal 2016, yet remain at adequate or better levels.
"The A rating also reflects our opinion of the district's low-to-moderate debt burden and debt service carrying charges," said Sauter.
