Standard & Poor’s downgraded Kankakee County Community High School District No. 307’s limited-tax general obligation rating to A from A-plus because debt levels now exceed the capacity to use a direct debt levy to support limited-tax bonds.
The downgrade on $14.9 million of debt preceded the upcoming sale of $4 million of taxable limited-tax GOs.
Standard & Poor’s affirmed the district’s A-plus GO rating. The rating is supported by its proximity to the Chicago area and its economy, good wealth and income levels, and low debt burden.
“We expect that the district will continue to maintain at least good reserve levels in its various operating funds as it faces capacity challenges as a result of continued enrollment growth,” wrote analyst Kathryn Horan.
The district serves a 42-square-mile area that includes Kankakee, Bradley, St. George, and Bourbonnais about 60 miles south of Chicago.
