S&P Global Ratings lowered its rating on Stephenson County School District (SD) No. 145 (Freeport) , Illinois? limited-tax general obligation (GO) bonds and GO bonds one notch to 'A-' from 'A?. The outlook is negative. The rating action reflects our opinion of Stephenson County SD?s weaker financial performance and significantly diminished reserves, constraining the district?s operational flexibility. Stephenson County SD's debt-service-extension base, limited as to rate but unlimited as to amount, secures the district?s existing limited-tax bonds. Although a limited tax secures the bonds, we rate the bonds on par with the district's general creditworthiness because there are no limits on resource fungibility to pay debt service. Stephenson County SD's existing GO debt is secured by the district?s ad valorem
