Moody's Investors Service said it has downgraded to A2 from A1 Maricopa County School District No. 7 (Wilson Elementary), Ariz.'s $2.8 million in previously issued general obligation bonds and maintains the district's negative outlook.

Moody's assigned an A2 rating to the district's school improvement bonds, project of 2012, Series A (2013).

The bonds constitute direct obligations of the district and are payable from an ad valorem tax levied, without legal limitation as to rate or amount.

The A2 rating reflects the district's small and concentrated tax base within the Phoenix metropolitan area, a recently improved financial position and a manageable debt profile.

The negative outlook reflects the view the district's tax base could decline further into 2015 and the district's financial flexibility is expected to continue to be constrained given a small enrollment with uneven growth likely over the near term.

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