...Fitch Ratings' downgrade of Minneapolis Special School District No. 1's Issuer Default Rating (IDR) and GO rating to 'A+' from 'AA' reflects spending pressure that recently eroded the general fund balance, along with modestly declining student enrollment, which is likely to result in slower revenue growth absent voter-approved tax increases, given the district's limited stand-alone revenue-raising power. The Stable Rating Outlook reflects the district's solid expenditure flexibility, moderate long-term liability burden and still-adequate general fund balance, and incorporates Fitch's view that, although financial flexibility could become strained due to cuts or delays in state aid disbursements, management will likely restore fiscal stability relatively quickly. Economic Resource Base: The district is coterminous with the city of Minneapolis (IDR: AA+/Stable), the largest city in the state of Minnesota (IDR: AAA/Stable). The city's broad and diverse economic base benefits from major employers...
