Martin County School, Fla., COPs Downgraded to A by Fitch

Fitch Ratings said it has downgraded to A from AA-minus Martin County School Board, Fla.'s $34.4 million certificate of participation.

In addition, Fitch downgraded its implied general obligation to A-plus from AA.

The rating outlook was revised to negative from stable.

The COPs are payable from lease rental payments made by the district, subject to annual appropriation, pursuant to a master lease purchase agreement. The district is required to appropriate funds for all outstanding leases under the master lease on an all-or-none basis. An event of non-appropriation would result in the termination of the master lease and the surrender to the trustee of all lease-purchased projects under the master lease.

The downgrade reflects Fitch's concern over the school district's recent weakening of reserve levels.

The negative outlook is based on uncertainties regarding the district's ability to achieve sufficient cost savings to regain satisfactory reserves as the majority of the proposed savings are dependent upon union approval.

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