Standard & Poor's Ratings Services said it lowered its long-term and underlying rating to A from A-plus on Mar Lee School District, Mich.'s existing general obligation bonds.
The outlook is negative.
"The lowered rating reflects our view of the district's persistent use of reserves, whose levels are already what we consider nominally slim, as well as projected operating deficits," said Standard & Poor's credit analyst Antionette Maxwell. "Should projections come in better than planned, we may revise the outlook back to stable," Maxwell added.
Mar Lee School District provides kindergarten through eighth grade (K-8) educational services to an estimated population of 1,648 in Calhoun County, a rural area.