Moody's cuts Florida's Broward Cty School District rating

Reuters

Oct 8 (Reuters) - Moody's Investors Service late on Mondaycut the issuer rating for Florida's Broward County SchoolDistrict to Aa3 from Aa2, reflecting its modest reserve andliquidity levels.

In addition, the rating agency also cut Broward CountySchool Board's $1.7 billion of certificates of participation toA1 from Aa3.

Moody's said that downgrade resulted from the board making a"significant amount of lease payments" from the district'scapital outlay millage, which then dragged on its ability tofund both long-term and short-term capital needs.

Moody's said it revised the outlooks on both ratings tostable from negative, citing the slowly improving economy, aswell as the district's manageable debt burden and sizable anddiverse tax base.

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