Standard&Poor's Ratings Services lowered its long-term and underlying ratings (SPUR) to 'AA-' from 'AA' on Fayette County Board of Education, Ky.'s existing debt. At the same time, Standard&Poor's assigned its 'AA-' long-term rating to Fayette County School District Finance Corp., Ky.'s series 2013 school building revenue bonds, issued for the board. The outlook on all ratings is negative. The lowered ratings and negative outlook reflect our view of the district's larger than expected deficit in 2012 and expected deficits in 2013 and 2014, despite currently reporting what we deem a strong level of reserves in an effort to bring reserve levels closer to its 5% fund balance target. We believe these factors could lead to a
