CUSIP 149321CN9
- ISIN: US149321CN99
- Entity Name: Quemado Independent School District No. 2, New Mexico
- Sector: Municipal Agency
- Announcement Date: *****
- Effective Date: *****
- Issue Date: *****
- Maturity Date: *****
- Country of Issuer: *****
- Region: N.Amer
- Issue Currency: *****
- CA Type: Rating Downgrade
- News: Moody`s Investors Service has downgraded to Baa2 from A3 the general obligation rating on Quemado Independent School District (ISD) No. 2, NM affecting $615,000 in outstanding debt. A stable outlook was assigned. RATINGS RATIONALE The downgrade to Baa2 is based on the district`s nominal scope of operations and narrow reserves, which are no longer in line with A3- peers. Further, the district`s pension burden is elevated and annual contributions remain below Moody`s calculated tread water. The rating also incorporates the district`s modestly-sized tax base with weak socioeconomic measures, and a low direct debt burden with rapid principal amortization. RATING OUTLOOK The stable outlook reflects our expectation that the district will continue to operate within a narrow financial position. FACTORS THAT COULD LEAD TO AN UPGRADE - Significant tax base expansion and economic diversification - Material increases to the district`s fund balance and reserves FACTORS THAT COULD LEAD TO A DOWNGRADE - Sustained tax base contractions - Deterioration of fund balance and cash reserves - Enrollment declines without corresponding expenditure management - Increased debt or pension burdens - Growing fixed costs that further hinders already limited financial flexibility
- Description: *****
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US149321CN99
