Standard & Poor's Ratings Services said it lowered its rating on Williamson, Jackson, and Franklin Counties Community Unit School District (CUSD) No. 4 (Herrin), Ill.'s outstanding general obligation bonds to A-minus from A.
At the same time, it assigned an A-minus long-term rating to the district's series 2015 GO alternate revenue source school refunding bonds. The outlook is stable.
"The lower rating reflects an ongoing structural imbalance that has led to reduced available reserves," said Standard & Poor's credit analyst Blake Yocom.
"The rating reflects our view of the district's budget gap in its general fund," he added, "and moderately high debt burden as a percentage of market value, coupled with very slow debt amortization." Another factor is its below-average, albeit adequate, incomes and low market value per capita.
