CHICAGO (S&P Global Ratings) April 7, 2020--S&P Global Ratings lowered its underlying rating to 'BBB+' from 'A-' on Cleveland Municipal School District, Ohio's outstanding general obligation (GO) debt. The outlook is negative. At the same time, we affirmed our 'AA' long-term rating on the school district's GO debt. The outlook is stable. "The downgrade to 'BBB+' and the negative outlook on the underlying rating reflect Cleveland Municipal School District's narrowing unencumbered cash reserves, which are estimated to have fallen to $11.4 million (1.4% of expenditures) on a GAAP-basis in 2019 and are projected to fall as low as $2.3 million (0.3%) on a cash-basis by the end of fiscal 2020 (June 30)," said S&P Global Ratings credit analyst Cora Bruemmer.
