Standard & Poor's Ratings Services said it lowered its underlying rating to A from A-plus on Rock Island County School District No.37 (East Moline), Ill.'s existing general obligation debt.
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At the same time, Standard & Poor's assigned its A long-term rating to the district's series 2015 taxable general obligation school bonds. The outlook is stable.
"The lowered rating is based on our view of the district's recent trend of general fund drawdowns and a low fund balance position," said Standard & Poor's credit analyst David Smith. "If the district is unable to make the necessary expenditure adjustments to address its declining reserves and its recent trend of fiscal imbalance continues, we could further lower the rating."
