Fitch Ratings said it has downgraded the Oroville Elementary School District, Calif.'s $5.4 million general obligation bonds, series 2003, to A-plus from AA-minus.
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The rating outlook is stable.
The bonds are payable from an unlimited ad valorem tax on all taxable property within the district.
The downgrade reflects a structural imbalance that has steadily eroded the district's previously solid fund balances. The fiscal 2014 unrestricted reserve balance amounted to 6.3% of spending compared to 17.7% at the end of fiscal 2011.
