Standard & Poor's Ratings Services said it lowered its long-term rating on Muskogee County Independent School District No. 20, Okla.'s general obligation debt one notch to A-minus from A and its long-term rating on Muskogee Industrial Trust's lease revenue bonds — which are supported by the district — to BBB-plus from A-minus.
At the same time, Standard & Poor's assigned its A-minus rating to the district's series 2015 GO combined-purpose bonds. The outlook is stable on all ratings.
"The downgrade reflects our view of the district's deteriorating financial position based on a 67.8% reduction in general fund available reserves to adequate levels in fiscal 2014 and a projected decline in fiscal 2015," said Standard & Poor's credit analyst Oscar Padilla.
The rating on the Muskogee Industrial Trust's lease revenue bonds reflects the district's long-term creditworthiness as well as the bonds' appropriation risk.
Muskogee County Independent School District No. 20 serves an estimated population of 30,863.
