Summary: Lebanon Community School Corp., Indiana; School State Program

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A+' underlying rating on Lebanon Community School Corp., Ind.'s unlimited ad valorem property-tax first-mortgage bonds outstanding. At the same time, we assigned and affirmed our 'AA+' long-term and underlying ratings to the corporation's approximately $17.2 million series 2023 general obligation (GO) bonds and existing debt, respectively. The outlook is stable on the long-term rating and negative on the underlying rating. The negative outlook reflects a potential near-term increase of roughly 200% in overall debt burden, which would push fixed costs and debt ratios to well above peers at the current rating level. It also reflects uncertainty on future tax base growth and how this could affect the corporation's

...+ S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A+' underlying rating on Lebanon Community School Corp., Ind.'s unlimited ad valorem property-tax first-mortgage bonds outstanding. + At the same time, we assigned and affirmed our '##+' long-term and underlying ratings to the corporation's approximately $17.2 million series 2023 general obligation (GO) bonds and existing debt, respectively. + The outlook is stable on the long-term rating and negative on the underlying rating. + The negative outlook reflects a potential near-term increase of roughly 200% in overall debt burden, which would push fixed costs and debt ratios to well above peers at the current rating level. It also reflects uncertainty on future tax base growth and how this could affect the corporation's ability to absorb the larger debt burden without a negative impact on its currently strong financial position....

Summary