S&P Global Ratings lowered its underlying rating by two notches to ?BBB+? from ?A? on Jackson County School District No. 5 (Ashland) , Ore?s general obligation (GO) debt. The outlook is negative. The downgrade reflects our view of recent operational deficits, which significantly weakened the district?s available reserves to a negative balance in 2024. While the district has taken steps to right size their budget, it will take multiple years to rebuild reserves. The negative outlook reflects the potential that we could lower the rating further if the district?s proposed structural budget reforms are insufficient to return to structural balance and rebuild reserves above current levels. In addition, we could lower the rating if we view the district?s potential long-term
