Standard & Poor's Ratings Services said it lowered its issuer credit rating to A from A-plus on Romeo Community School District, Mich.'s general obligation debt outstanding due to a weakened general fund balance.
The outlook is negative. At the same time, Standard & Poor's affirmed its AA-minus enhanced long-term and underlying (SPUR) rating on the district's existing general obligation bonds. The outlook on the program rating is positive.
"The lowered rating on the ICR reflects our belief that the district's reserves are likely to be further reduced, given its current structural imbalance," said Standard & Poor's credit analyst Caroline West. "The AA-minus enhanced rating on the bonds reflects our view of the district's qualification for, and participation in, the Michigan School Bond Qualification and Loan Program," West added.
Romeo Community School District serves an estimated population of 34,819 in a 94-square-mile area and is located in northwest Macomb County, which allows residents access to the Detroit economic base.
