S&P Global Ratings lowered its underlying rating (SPUR) to 'A-' from 'A' on Salem Community School Corp., Ind.'s existing general obligation (GO) and ad valorem property tax first-mortgage bonds, issued by Salem High School Building Corp. and Salem Middle School Building Corp. on behalf of the school corporation. At the same time, we affirmed our 'AA+' long-term rating on its existing debt. The outlook on all the ratings is stable. The downgrade reflects our views of the district's persistent enrollment declines and current cash reserves that provide little financial flexibility and are no longer commensurate with those of its higher rated peers, and limited local economy. Ongoing declines in enrollment--that is tied to state aid revenues--will likely continue to pose
