Moody's Investors Service said it has downgraded to A2 from A1 the underlying rating on Reeths-Puffer Schools, Mich.
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The outlook on the district is negative.
The A2 rating and negative outlook apply to $43 million of outstanding rated general obligation unlimited tax debt.
The A2 rating reflects the district's consecutive operating deficits that have resulted in a narrowing of reserves and liquidity. Additionally factored are the district's ongoing enrollment declines and above average debt burden.
The rating is also based on the district's moderately sized tax base and exposure to unfunded pension liabilities of a multi-employer cost-sharing retirement system.
