Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Mendocino-Lake Community College District, Calif.'s general obligation bond rating, affecting $63.9 million of outstanding rated debt.
The bonds are secured by the district's unlimited property tax pledge.
The A1 rating reflects the district's comparatively small but stable tax base relative to other California community college districts (CCDs), below average resident wealth levels, and moderate yet manageable debt burden with a slow debt payout rate.
The downgrade incorporates the district's prolonged limited liquidity and structurally imbalanced operations projected through the near-term, despite mollified revenue pressure resulting from the passage of Proposition 30.
