S&P Global Ratings lowered its underlying rating on Woodward-Granger Community School District, Iowa’s unlimited-tax general obligation (GO) school bonds three notches to ‘BBB+'from'A+'. The outlook is negative. The downgrade reflects the district's significant deterioration in general fund reserves to negative $635,000, or negative 3.5% of revenues, in fiscal 2025, contrary to management’s previous financial expectations to return to positive financial results in 2024. The negative outlook reflects our expectation that there is a one-in-three chance that we will lower the rating further over the outlook horizon, as management is budgeting for continued deficits in fiscals 2026 and 2027. The district’s existing bonds are secured by its unlimited ad valorem property tax. The lowered rating reflects the district's unanticipated
