Fitch Ratings said it downgrades the rating on approximately $72 million of Gainesville Redevelopment Authority, Ga, revenue refunding bonds issued on behalf of Riverside Military Academy (RMA) to BB-plus from BBB-minus.

The rating outlook is revised to stable.

The bonds are an absolute and unconditional obligation of RMA, secured by a fully funded debt service reserve and a first lien on the academy's campus.

The rating downgrade is based on a six-year trend of deeply negative operating deficits and sustained reliance on balance sheet resources, which has substantially depleted unrestricted liquidity. A high debt burden continues to hamper RMA's ability to balance operations.

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