S&P Global Ratings lowered its underlying rating on Bates County R-III School District (Adrian) , Mo.'s general obligation (GO) bonds outstanding to ?A? from ?A+?. At the same time, we assigned our 'AA+? long-term rating (based on credit enhancement) and 'A' underlying rating to the district's $6.7 million series 2025 GO school building bonds. We also affirmed our ?AA+? long-term rating on the district?s GO debt outstanding. The outlook is stable. The downgrade reflects our view of the district?s increasing debt burden with very slow amortization, which, when combined with a limited economy, small population, and limitations in financial planning and policies, supports a credit profile that is no longer comparable to ?A+? rated peers. The underlying rating reflects the
