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Nampa School District gets a ratings downgrade from the S&P
Standard and Poor’s gave the Nampa School District a significant downgrade on its credit rating.
On October 16, the S&P changed the rating from an A to BBB.
That means the District’s bond rating went down three notches.
Financial analysts say if an entity receives an S&P ratings downgrade, it’s typically down one notch.
“The district's financial cushion dropped from what we already consider a low level to negative territory in fiscal 2012, primarily because of what management indicates were revenue projection errors related to federal grants,” the S&P analysis says.
In the report, credit analyst Chris Morgan says rating action was out of concern for the significant operating deficit - and because the problems could continue if they don’t correct it.
The rating means S&P believes the outlook is “stable.”
A BB+ rating, two notches lower than the School District’s current rating, would put the School District in the “speculative” bond category - commonly known as “junk bonds.”