Moody’s Investors Service last week affirmed the A2 rating on the Cleveland Municipal School District’s outstanding general obligation unlimited-tax debt, but revised the outlook to negative from stable due in part to the district’s thin liquidity. The school district, which serves the city of Cleveland, is asking voters to approve a new operating levy in November. If voters reject the measure, the district will have “extremely narrow liquidity at the end of fiscal 2013,” Moody’s said in a report on the outlook revision.

Even if the levy is passed, the district may have a hard time rebuilding its reserves amid cuts in state aid from Ohio and a 21% property tax delinquency rate, analysts said.

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