New York Mills School credit rating drops
The New York Mills Independent School District's credit rating has been downgraded from A2 status to A3.
The downgrade was given after an evaluation of the financial history of the district by Moody's, an independent rating company.
According to Moody's, the downgrade is due to a declining tax base in the school district, a below average economic profile and narrow financial positions.
Moody's also listed financial strengths for the district, including a recently passed excess operating levy and an average debt burden that is expected to decline.
The downgrade was discussed briefly at a school board meeting Monday, when the board expressed disappointed in Moody's assessment. Downgrades often mean higher interest rates on borrowed funds. While downgrades are never good, Superintendent Todd Cameron said this one was modest.
The ratings are used among investors, specifically when schools try to sell Aid Anticipation Certificates.
Since the NY Mills district is still in the A range, the risks are considered pretty low, and Cameron does not expect problems as they attempt to sell certificates.