Standard & Poor's Ratings Services said it lowered its underlying rating for credit program on Whittemore-Prescott Area School District, Mich.'s general obligation (GO) debt to BBB-plus from A-minus.
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The outlook is stable.
"The downgrade reflects our view of the district's sustained operating imbalances after a further draw on its already nominally thin fund balance at fiscal year-end 2014, which we believe limits the district's flexibility to handle potential financial challenges," said Standard & Poor's credit analyst Errol Arne. "In our view, the district's finances remain structurally imbalanced partly due to declining enrollment and inadequate budget cuts."
The district's unlimited-tax, full faith and credit GO pledge secures the bonds.
