...S&P Global Ratings assigned its '##' long-term rating and 'A+' underlying rating to Romeo Community School District, Mich.'s $60 million series 2022 general obligation (GO) unlimited-tax school building and site bonds II. At the same time, we affirmed our 'A+' rating on the district's existing GO debt. The outlook on all the ratings is stable. The '##' long-term rating reflects our view of Romeo Community School District's participation in the Michigan State School Bond Loan Program. Section 16, Article 9 of Michigan's 1963 Constitution created the program to provide districts with access to funds to avoid default on qualified debt. Under the program, if a school district fails to meet its debt service obligation for qualified debt, the state treasurer pays the required debt service, and payment to bondholders is uninterrupted. If the balance in the state's loan fund is insufficient to cover obligations, the state is required to make loans from the general fund or issue state GO debt. We...
