Standard & Poor's Ratings Services said it lowered its rating on Sterling Park District, Ill.'s outstanding general obligation alternate revenue source bonds to BBB-minus from BBB.
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The outlook is stable.
"The downgrade reflects our view of the district's limited internal liquidity, coupled with the use of alternative financing instruments that include what we consider permissive events of default that could lead to the immediate acceleration of all principle and interest accrued thereon," said Standard & Poor's credit analyst Scott Nees. At certain points during its fiscal year, the district would not have sufficient cash on hand to cover an acceleration.
