Holt Public Schools, MI GO Debt Outlook Revised To Negative From Stable On Decreased Enrollment, Budgetary Gap

CHICAGO (S&P Global Ratings) June 6, 2023--S&P Global Ratings revised its outlook to negative from stable on Holt Public Schools, Mich.'s existing general obligation (GO) debt and affirmed its 'A+' rating on the district's GO debt. At the same time, we assigned our 'AA' long-term rating, with a stable outlook, and 'A+' underlying rating, with a negative outlook, to the district's estimated $33.51 million 2023 school building and site bonds, series II. "The outlook revision reflects a confluence of declining enrollment and a developing budget gap, which could pressure reserves that are already at levels well below those of similarly rated peers and leave limited cushion relative to revenue constraints," said S&P Global Ratings credit analyst John Sauter. The negative

...June 6, 2023 CHICAGO (S&P Global Ratings) June 6, 2023--S&P Global Ratings revised its outlook to negative from stable on Holt Public Schools, Mich.'s existing general obligation (GO) debt and affirmed its 'A+' rating on the district's GO debt. At the same time, we assigned our '##' long-term rating, with a stable outlook, and 'A+' underlying rating, with a negative outlook, to the district's estimated $33.51 million 2023 school building and site bonds, series II. "The outlook revision reflects a confluence of declining enrollment and a developing budget gap, which could pressure reserves that are already at levels well below those of similarly rated peers and leave limited cushion relative to revenue constraints," said S&P Global Ratings credit analyst John Sauter. The negative outlook reflects that there is at least a one-in-three chance we could lower the rating within the next two years. We could lower the rating if budget pressures increase, prompting reserve spending, if reserves...

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