Moody's Investors Service said it has downgraded to Baa1 from A2 the underlying rating on Newton Falls Exempted Village School District, Ohio's general obligation unlimited tax debt.
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The downgrade applies to $2.4 million of outstanding 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 Baa1 primarily reflects the district's limited tax base, poor election history, high exposure to underfunded pension liabilities of two cost-sharing retirement plans, and poor socio economic profile.
The rating also takes into account the weak cash position, and projected draw downs in general fund balance.
