Moody's Investors Service has downgraded to A3 from A1 the underlying rating on New Boston Local School District, Ohio's general obligation unlimited tax debt.
Processing Content
The downgrade applies to $3.3 million of rated debt. The bonds are secured by the authorization and pledge to levy a tax unlimited as to rate and amount to pay debt service.
The downgrade to A3 primarily reflects the district's extremely limited tax base and weak socioeconomic profile, as well as a nominally limited financial position. The rating also reflects the district's above average debt burden, limited prospects for raising new revenue, projected financial draw downs, and long term risks posed by exposure to underfund cost-sharing pension plans.
