Standard & Poor's Rating Services said it lowered its issuer credit rating to BBB from BBB-plus on Pinckney Community Schools, Mich.'s existing general obligation debt.
The outlook is stable.
At the same time, Standard & Poor's affirmed its AA-minus long-term and underlying rating on the district's state school program and refunding bonds. The outlook on the long-term rating is positive.
"The lowered rating reflects our view of the district's sizable negative general fund balance, as well as projections that indicate a negative general fund balance until fiscal 2018," said Standard & Poor's credit analyst Caroline West. "The district's long-term rating reflects its participation in the state of Michigan School Bond Qualification and Loan Program," West added.
Pinckney Community Schools serves a population of about 26,208 in Livingston County, Mich., and is predominantly made up of Hamburg Township and Putnam Township.
