Summary: Kokomo School Corp., Indiana; School State Program

S&P Global Ratings lowered its underlying rating to 'A' from 'A+' on Kokomo School Corp., Ind.'s general obligation (GO) bonds. The outlook is negative. We also assigned our 'A' underlying rating and the negative outlook and 'AA+' long-term rating and stable outlook to the district's series 2016 GO bonds. At the same time, we affirmed our 'AA+' long-term rating on the district's previously rated bonds, reflecting the school corporation's eligibility for, and participation in, the Indiana State Aid Intercept program. The outlook on the program rating is stable. The downgrade reflects lower reserves than originally expected, the district's failure to comply with its reserve target of 9%-12% of general fund expenditures, and unexpected large deficits. The negative outlook reflects the

...S&P Global Ratings lowered its underlying rating to 'A' from 'A+' on Kokomo School Corp., Ind.'s general obligation (GO) bonds. The outlook is negative. We also assigned our 'A' underlying rating and the negative outlook and '##+' long-term rating and stable outlook to the district's series 2016 GO bonds. At the same time, we affirmed our '##+' long-term rating on the district's previously rated bonds, reflecting the school corporation's eligibility for, and participation in, the Indiana State Aid Intercept program. The outlook on the program rating is stable. The downgrade reflects lower reserves than originally expected, the district's failure to comply with its reserve target of 9%-12% of general fund expenditures, and unexpected large deficits. The negative outlook reflects the possibility that the rainy-day fund will be depleted in the near future and the possibility of a further decline in the general fund. The district's aggregate property tax levy is subject to the circuit-breaker...

Summary