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

Oct 8 (Reuters) - Moody's Investors Service late on Monday cut the issuer rating for Florida's Broward County School District to Aa3 from Aa2, reflecting its modest reserve and liquidity levels.

In addition, the rating agency also cut Broward County School Board's $1.7 billion of certificates of participation to A1 from Aa3.

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

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