PHOENIX - Standard & Poor's downgraded the underlying rating of Snohomish County School District No. 15 in Edmonds, Wash. to AA-minus from AA, saying it has drawn its reserve levels down considerably.
The district had $342 million in bonds outstanding as of its most recently filed annual financial data last year.
S&P still assigns an enhanced AA-plus rating to the unlimited tax general obligation bonds under the terms of the Washington State School District Credit Enhancement Program, which also applies to the district's coming UTGO sale. That program backs voter-approved school bonds with the full faith and credit of the state.
"The lowered rating reflects our view of the district's available fund balance drawdowns in 2014 and 2015, from a strong reserve level to a good reserve level, which we no longer consider commensurate with its peers," said S&P credit analyst Jean Lee wrote Nov. 10. "Should the district draw down its reserves to less than adequate levels and the current rating is no longer commensurate with its peers, we could further lower the rating," Lee added.
The district is located in southern Snohomish County approximately 12 miles north of Seattle, and serves about 165,921 residents.
