S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA' long-term and underlying ratings on Franklin Township Board of Education (BOE), Somerset County, N.J.'s existing general obligation (GO) debt. The outlook revision reflects the district's recent fund balance decreases and ongoing budgetary pressures, which could impair the rating if the district is unable to make the budgetary adjustments necessary to balance operations. The rating is based on the application of our "Methodology For Rating U.S. Governments," published Sept. 9, 2024. The district's full-faith-and-credit pledge secures its existing debt, and the New Jersey Fund for the Support of Free Public Schools program provides additional security. (See "New Jersey Credit Enhancement Programs," published July 11, 2024, on RatingsDirect.)
