Moody's Investors Service said it has downgraded to Ba2 from Ba1 the rating of the Philadelphia School District, Pa., affecting $2.2 billion in general obligation debt directly issued by the district and $1.1 billion in parity debt issued through the State Public School Building Authority (SPSBA); the outlook remains negative.

The bonds are secured by the school district's general obligation, as it has pledged its full faith and credit and taxing power to secure payments on its directly-issued GO bonds as well as payments owed to the SPSBA on its lease revenue bonds.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.