Moody's Investors Service said it has downgraded Pinal County Union High School District 840 (Santa Cruz Valley), Ariz.'s general obligation rating to A2 from A1.
The downgrade affects $4.95 million in general obligation debt. The bonds are secured by the district's unlimited property tax pledge.
The A2 rating reflects the district's weakened tax base following multiple declines over a five year period substantially decreasing assessed values, as well as the high taxpayer concentration.
The rating is indicative of a very small, but stable financial position that experienced consecutive declines. The rating also considers the fluctuating enrollment that impact state funding and financial position.
The rating further reflects the small debt burden with rapid amortization.
