Standard & Poor's Ratings Services said it has lowered its underlying rating on Venus Independent School District, Texas' existing general obligation rated debt to A from A-plus.
The outlook is stable.
"We base the downgrade on our view of the district's sizable and consecutive tax base declines, over several years, and consecutive declines to reserves, despite strong reserve levels," said Standard & Poor's credit analyst Emmanuelle Lawrence.
The negative tax base trend and draws on reserves, in addition to the lack of formalized financial policies, in several key areas, are credit concerns and support the downward rating action.
The A reflects the district's: access to the diverse and robust Dallas area economy; and very strong financial position, despite consecutive fund balance drawdowns.
