Moody's Downgrades Alcona Community Schools, Mich., to A1

Moody's Investors Service said it has downgraded to A1 from Aa3 the rating on Alcona Community Schools, Mich.'s general obligation unlimited tax debt.

The A1 rating applies to $700,000 of rated GOULT debt, as of June 30.

The downgrade to A1 primarily reflects the district's narrowed reserve position resulting from multiple years of deficit operations.

Also incorporated in the rating is the district's moderately sized tax base, declining enrollment, very low debt burden, and exposure to underfunded pension liabilities of a cost-sharing retirement system.