Moody's Investors Service has downgraded San Leandro Unified School District, Calif.'s general obligation bond rating to A1 from Aa3, affecting approximately $68.7 million in Moody's rated debt.
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The bonds are secured by revenues derived from the district's unlimited property tax pledge. Concurrently, the negative outlook has been removed.
The rating primarily reflects the district's weakened financial position resulting from multi-year deficit spending. The rating also incorporates the expectation the district's large tax base will continue to improve along with the California economy. Further, the district's elevated debt profile coupled with below-average principal amortization are factored into the rating.
