Moody's Investors Service revised Nevada's Washoe County School District outlook to negative on Sept. 21, but affirmed its Aa2 rating.

The action affects $45 million of general obligation limited tax bonds the district plans to price on Oct. 14 and $553 million in parity debt.

The district received the negative outlook based on district projections of near-term fiscal pressures that could result in substantial general fund reserve drawdowns below Aa2-rated peers, Moody's analysts said.

The region also continues to experience a decline in assessed valuations, although the decrease in rates has slowed somewhat.

The district kept the Aa2 rating because it retains a large tax base despite recent declines and the school system's diminished budgetary flexibility following years of operating surpluses.

The district also has a manageable debt profile featuring voter-imposed debt service limits and mandatory debt service reserves buttressing thin debt-service coverage levels, the report said.

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