Lewis and Clark Community College District, IL GO Bonds Lowered To 'A-' On Structural Imbalance, Deteriorated Reserves

CHICAGO (S&P Global Ratings) March 24, 2017--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) on Lewis and Clark Community College District, Ill.'s general obligation (GO) bonds outstanding to 'A-' from AA'. The outlook is negative. "The lowered rating reflects the district's structural imbalance and available reserve position that significantly deteriorated by the end of fiscal 2016," said S&P Global Ratings credit analyst Andrew Truckenmiller. "The negative outlook reflects our view of the district's break-even budget for the current fiscal year, and its dependency on receiving 86% of allocated state funding for fiscal 2017; if funding is not fully realized, the district's available reserve position will further deterioration to negative levels." The district's full-faith-and-credit unlimited-tax GO pledge secures

...CHICAGO (S&P Global Ratings) March 24, 2017--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) on Lewis and Clark Community College District, Ill.'s general obligation (GO) bonds outstanding to 'A-' from ##'. The outlook is negative. "The lowered rating reflects the district's structural imbalance and available reserve position that significantly deteriorated by the end of fiscal 2016," said S&P Global Ratings credit analyst Andrew Truckenmiller. "The negative outlook reflects our view of the district's break-even budget for the current fiscal year, and its dependency on receiving 86% of allocated state funding for fiscal 2017; if funding is not fully realized, the district's available reserve position will further deterioration to negative levels." The district's full-faith-and-credit unlimited-tax GO pledge secures the 2016 bonds and parity bonds. The series 2015B alternative revenue source (ARS) bonds are secured by certain pledged revenue, and to the extent...

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