Summary: Southern Kern Unified School District, California; General Obligation

S&P Global Ratings lowered its long-term rating to 'A-' from 'A+' on Southern Kern Unified School District, Calif.'s general obligation (GO) bonds outstanding. The outlook is stable. The rating change reflects our view of the district's recent financial strain, which has resulted in negative fund balances, due in part to district management overestimating enrollment growth and expected revenue. In response to the recent results, the Kern County Office of Education (COE) has stepped in to assist the district returning to positive operations. At the same time, we believe the stable outlook reflects our view that the COE's measures to assist the district will lead to financial stability in the near future. Unlimited ad valorem taxes levied on taxable property within

...S&P Global Ratings lowered its long-term rating to 'A-' from 'A+' on Southern Kern Unified School District, Calif.'s general obligation (GO) bonds outstanding. The outlook is stable. The rating change reflects our view of the district's recent financial strain, which has resulted in negative fund balances, due in part to district management overestimating enrollment growth and expected revenue. In response to the recent results, the Kern County Office of Education (COE) has stepped in to assist the district returning to positive operations. At the same time, we believe the stable outlook reflects our view that the COE's measures to assist the district will lead to financial stability in the near future. Unlimited ad valorem taxes levied on taxable property within the district secure the GO bonds. The Board of Supervisors of Kern County has the power and obligation to levy these taxes at the district's request for the bonds' repayment. The rating further reflects of view of the district's:...

Summary