Standard & Poor's Ratings Services said it lowered its underlying rating for credit program to A-minus from A on North Vermillion Community School Building Corp., Ind.'s series 2013 ad valorem property tax first-mortgage bonds, issued for North Vermillion Community School Corp.
The outlook is negative.
At the same time, Standard & Poor's affirmed its AA-plus long-term enhanced rating, and stable outlook, on the bonds.
"The lowered rating reflects our view of the district's deteriorated cash position, and the negative outlook is based on uncertainty around future operations given the already-thin cash reserve position," said Standard & Poor's credit analyst Kathryn Clayton.
The A-minus underlying rating reflects our opinion of the school corporation's general creditworthiness, including its: agriculture-, manufacturing-, and service-based local economy, with access to the more diverse Terre Haute area economy; adequate income indicators; and moderate debt burden on a per capita basis, with limited capital needs.
