Moody's Investors Service last week cut its underlying rating on Dewitt Public Schools, Mich. to A1 from Aa3 as the district prepares to come to market with $6.4 million of refunding bonds.

Moody's assigns an enhanced rating of Aa2 to the bonds based on the security from the School Bond Qualification and Loan Program.

The downgrade reflects the district's declining tax base, ongoing general fund operating deficits, and high debt burden, the ratings agency said in a report.

The district's location near employment centers in Lansing and stable enrollment are credit positives, analysts said.

Dewitt has $51.5 million of outstanding general obligation bonds. Moody's said it rates $28.5 million of them.

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