Moody's Investors Service said it downgrades to A1 from Aa3 the rating on Twin Falls County School District No. 411, Idaho's Series 2006 general obligation bonds outstanding in the approximate amount of $39.3 million.
The bonds are secured by the district's unlimited property tax pledge.
The downgrade primarily reflects the district's recent inability to balance financial operations without drawing reserves. As a result, reserves narrowed to levels well below similarly rated school districts nationally. The rating also incorporates the district's sizable and growing tax base and below average wealth indices and modest debt burden.