“The speculative-grade rating reflects the district’s significant and sustained financial challenges characterized by extremely light liquidity, which has deteriorated swiftly over the past two years,” said S&P analyst Patrick Zagar.
The outlook is negative, reflecting S&P Global Ratings’ opinion the district’s available liquidity provides little to no cushion for any unforeseen operational challenges that may arise. S&P also said the district’s weak economic activity and demographics, limited revenue base and material reliance on supplemental funding may make it more vulnerable to reimbursement changes.
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