Moody's cuts Michigan's Reed City School District rating to Baa1

Thu Aug 22, 2013 5:43pm EDT

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Aug 22 (Reuters) - Moody's Investors Service on Thursday cut its general obligation unlimited tax bond rating to Baa1 from A2 on Michigan's Reed City School District with a negative outlook, affecting about $13.4 million of debt.

The downgrade reflects the district's weak financial position and trend of operation imbalance.

It is expected the district's financial reserves will remain limited and could fall further, along with further operating deficits that could lead to another downgrade, the rating agency said in a statement.