S&P Global Ratings lowered its long-term rating to 'A+' from 'AA-' on Van Meter Community School District, Iowa's outstanding general obligation bonds, due to decreasing reserves that we no longer believe to be comparable with those of similarly rated peers. The outlook is stable. Securing the bonds is the district's unlimited ad valorem tax pledge. The downgrade reflects our view that the district exhibits weakened financial flexibility compared with similarly rated peers and that potential impacts from the recession could slow its efforts to rebuild reserves. The district's most recent performance has improved from the preceding years of deficit operating results. However, we believe its current reserves are thinner and may be pressured by prolonged effects from the COVID-19 pandemic
