Moody’s Investors Service has downgraded the Pocono Mountain School District’s unlimited-tax rating to A2 from A1, affecting $185 million of outstanding debt. Moody’s also downgraded the Pennsylvania district’s limited-tax rating to A3 from A2, affecting $72 million of outstanding debt.

The district’s limited-tax debt is subject to Pennsylvania’s Special Session Act 1 property tax limitations.

The outlook for both categories remains negative. All of the district’s debt maintains the Aa3 enhanced rating with a negative outlook based on the Act 150 state intercept.

The downgrade reflects the district’s continued financial weakness, driven by ongoing structural imbalance, and the absence of a comprehensive plan to return to and maintain adequate financial flexibility. The rating also reflects the district’s large tax base with average wealth levels and elevated debt burden.

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