...S&P Global Ratings lowered its long-term rating on Marshalltown Community School District (CSD), Iowa's outstanding general obligation (GO) bonds to 'A' from 'A+'. The outlook is negative. The lower rating reflects our view of the district's weakened financial position, following a deficit in fiscal 2018, with an additional deficit expected for fiscal 2019, leading to reserve levels that we no longer consider comparable to those of similarly rated peers. The negative outlook reflects our view that there is at least a one-in-three chance of a lower rating in the two-year outlook horizon if the district's budgetary imbalance persists through fiscal 2020 or continues into subsequent years, or if pending capital needs lead to additional draws on available general fund reserves. The 'A' rating is supported by the district's strong market value per capita and stable local economy. While the city has experienced some difficulties with a recent tornado passing through, it has shown great recovery,...
