Rating Sinks in Winterset

Moody’s Investors Service downgraded the Winterset Community School District’s rating by one notch to A2 due to a narrow but improving financial position. The action affects $18 million of outstanding general obligation debt.

Moody’s analysts wrote that the district’s general fund reserves will remain in red territory through fiscal 2011.

Credit pluses include a moderately sized tax base favorably located near Des Moines and an elevated debt burden with slow principal amortization.

The district closed out fiscal 2010 with a negative $2.1 million general fund balance and expects to remain negative in 2011. Officials are taking many steps to restore solvency such as increasing tax rates, implementing and raising cash levies, and slashing expenditures.

For reprint and licensing requests for this article, click here.
Iowa
MORE FROM BOND BUYER