Moody's Investors Service has downgraded to A2 from A1 the underlying rating on Warren City School District, Ohio's outstanding general obligation unlimited tax (GOULT) debt.
The bonds are secured by the district's authorization and pledge to levy a tax unlimited as to both rate and amount to pay debt service.
The A2 rating incorporates the district's challenged economic and demographic environment as indicated by negative population, wealth, and tax base trends.
The rating also reflects a stable financial position supported by an estimated positive operating performance in fiscal 2014 and balanced budget in fiscal 2015. Lastly, the rating encompasses the district's elevated debt burden and exposure to unfunded liabilities of two cost-sharing retirement plans.
