Eastport-South Manor Central School District, NY, GO Debt Downgraded To 'AA-' From 'AA+ On Continuing Reserves Drawdowns

NEW YORK (S&P Global Ratings) Jan. 22, 2018--S&P Global Ratings lowered its long-term rating on Eastport-South Manor Central School District (CSD), N.Y.'s general obligation (GO) debt outstanding two notches to 'AA-' from 'AA+'. The outlook on all ratings is negative. The downgrade reflects continued drawdowns to reserves following management's inability to align revenues with expenditures. "Credit quality depends on Eastport-South Manor's ability to stabilize operations in fiscal 2019," said S&P Global Ratings credit analyst Tiffany Tribbitt. The rating reflects our view of the district's: Continued structurally imbalanced budgets; Adequate available fund balances, with further declines expected at fiscal year-end 2018; and Standard management policies and practices. Offsetting these weaknesses is the district's extremely strong economy, and low-to-moderate debt burden. Located

...NEW YORK (S&P Global Ratings) Jan. 22, 2018--S&P Global Ratings lowered its long-term rating on Eastport-South Manor Central School District (CSD), N.Y.'s general obligation (GO) debt outstanding two notches to '##-' from '##+'. The outlook on all ratings is negative. The downgrade reflects continued drawdowns to reserves following management's inability to align revenues with expenditures. "Credit quality depends on Eastport-South Manor's ability to stabilize operations in fiscal 2019," said S&P Global Ratings credit analyst Tiffany Tribbitt. The rating reflects our view of the district's: + Continued structurally imbalanced budgets; + Adequate available fund balances, with further declines expected at fiscal year-end 2018; and + Standard management policies and practices. Offsetting these weaknesses is the district's extremely strong economy, and low-to-moderate debt burden. Located in Suffolk County on the South Shore of Long Island, Eastport-South Manor CSD serves an estimated population...

Ratings Action