Moody's Investors Service said it has downgraded to A2 from A1 the rating on Willard City School District, Ohio's general obligation debt.

The downgrade applies to $21 million of general obligation debt, including $10.5 million of outstanding general obligation unlimited tax debt (GOULT) and $10.5 million in parity general obligation limited tax debt (GOLT).

The A2 rating primarily reflects the district's narrow financial position and limited budgetary flexibility. In addition to the district's financial challenges, the A2 rating also incorporates the district's modestly sized base, below average socioeconomic characteristics, above average debt burden and long term risks posed by exposure to underfunded cost-sharing pension plans.

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