Standard and Poor's Downgrades Lacey School District Debt Rating

Standard and Poor’s has lowered the Lacey Township school district’s long-term rating due to its overall weakened financial position, according to a company assessment.

The ratings for the district’s general obligation debt dipped from ”AA” to ’A’ and could possibly drop even lower if things don’t improve.

“The downgrade reflects the district’s strained financial position and weakened liquidity position coupled with the lack of a clear plan to restore structural budgetary balance and maintain stable reserves for fiscal 2015 and beyond,” said Standard & Poor’s credit analyst Danielle Leonardis in the assessment.

Currently, the district’s outlook is stable, with ”thin, yet adequate” reserve levels , Leonardis said.

But the district’s overall weakened financial position is putting pressure on the ratings.

“If the district can’t keep township payments current and maintain structural budgetary balance, further drawing on reserves, we might again lower the rating,” the assessment states. “However, if the district receives timely and consistent township payments and restores, and maintains at least adequate reserve levels, we might raise the ratings.

The bonds are secured by the district’s full-faith-and-credit GO pledge and participating in the New Jersey Fund for the Support of Free Public Schools Program,” Leonardis said.

The district operates four elementary schools and one middle, and one high school.