Standard & Poor's Ratings Services said it lowered its long-term rating to A-plus from AA-minus on Sheffield-Sheffield Lake City School District, Ohio's series 2011 general obligation unlimited-tax school improvement bonds.
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The outlook is negative.
"The rating action reflects our view of management's inaction to make timely expenditure cuts to prevent a large reduction in available reserves, which we anticipate will recur in fiscal 2015," said Standard & Poor's credit analyst Benjamin Gallovic.
The negative outlook reflects the district's diminishing financial strength, represented by a projected use of reserves in 2015 and 2016.
