Standard & Poor's Ratings Services said it lowered its long-term rating on Valley Park School District, Mo.'s existing general obligation (GO) debt to AA-minus from AA.
Standard & Poor's also lowered its appropriation-backed debt rating to A-plus from AA-minus.
At the same time, Standard & Poor's assigned its AA-minus long-term rating to the district's series 2014A and series 2014B GO refunding bonds (combined, the series 2014 bonds). The outlook on all ratings is stable.
"The rating change reflects continued declines in the available reserve position," said Standard & Poor's credit analyst John Sauter, "as well as management's continued lowering of stated minimum reserve targets." Another factor is our consideration of limited long-term planning practices currently in use, compared to prior years.
"Ratings strengths include the district's general fund reserves forecasted to remain strong, despite recent declines," added Sauter, "and moderate debt burden."
