DALLAS — Overstating its enrollment has caused a fiscal crisis for a school district in Houston, while a Dallas charter school was forced to close its doors last week after Texas officials realized it overestimated student population figures and collected too much in state funds as result.

Standard & Poor’s earlier this week lowered the credit of the North Forest Independent School District in northeast Houston two notches to the speculative-grade rating of BB from BBB-minus due to “severe fiscal distress.” The downgrad applies to $68 million of outstanding debt.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.