S&P Global Ratings lowered its underlying rating to 'A' from 'A+' on Jackson County School District No. 5 (Ashland), Ore.'s outstanding general obligation (GO) debt. The outlook is negative. The downgrade reflects our view of the district's operating uncertainties due to persistent challenges from increased expenditures as well as material decreases to its fund balance and liquidity to a level we consider adequate in fiscal 2024, based on the district's most recent estimate. The negative outlook reflects a one-in-three chance that we could further lower the rating during the next two years if the budget-balancing actions taking effect for fiscal 2025 designed to begin rebuilding district reserves are insufficient to avoid a further weakening in its available general fund balance.
