Moody’s Investors Service downgraded Minnesota’s New London-Spicer School District 345 to A2 from A1, impacting $12.1 million of outstanding long-term general obligation debt secured by the district’s GO unlimited tax pledge.
Concurrently, Moody’s has removed the negative outlook, reflecting the expectation that the district’s financial position will stabilize in the near term.
The A2 rating indicates the district’s moderately sized $1.4 billion tax base, approximately 40 miles southwest of St. Cloud, could decline in the near term due to the current economic downturn.
The rating also incorporates district residents’ average socioeconomic profile, and the expected maintenance of a manageable low direct debt burden given the absence of future debt plans. All the district debt is fixed rate and the district is not party to any derivative agreements.
