The 'AA' enhanced rating assigned to Cleveland Municipal School District, Ohio's unlimited-tax general obligation (GO) school improvement bonds series 2010 reflects the district's eligibility for, and participation in, the Ohio Credit Enhancement Program. The program is structured to provide school bonds with added security from a state aid withholding mechanism that has strong statutory provisions. Upon state approval, the agreement between the state and local school district for participation in the program is irrevocable as long as any program debt is outstanding. The 'BBB+' issuer credit rating (ICR) assigned to the series 2010 bonds reflects, in Standard&Poor's Rating Services' view, the district's: Diminished financial position resulting in adequate reserve levels; and Lack of voter support for operating levies.
