Moody's Investors Service said it has downgraded its rating on Orchard School Foundation, Ind.'s revenue bonds to A3 from A2.
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The outlook is stable. The downgrade reflects consistent operating deficits with cash flow generation insufficient to cover debt service in FY 2012, elevated endowment spending, and the resulting muted growth of financial resources.
The downgrade to A3 reflects Orchard's reliance on elevated endowment draws to support operations and resulting deficit operations.
