Albert Gallatin Area School District, PA GO Rating Lowered To #A-# On Ongoing Structural Imbalance, Financial Decline

Stocks and Financial Services Press Releases Thursday September 28, 2017 08:51
NEW YORK--28 Sep--S&P Global Ratings

NEW YORK (S&P Global Ratings) Sept. 27, 2017--S&P Global Ratings lowered its rating on Albert Gallatin Area School District, Pa.'s outstanding general obligation (GO) debt to 'A-' from 'A'. The outlook is stable.

"The downgrade is based on the district's ongoing structural imbalance since fiscal 2010, which has deteriorated available reserves significantly, to $2.3 million in fiscal 2016 from $7.9 million in fiscal 2010," said S&P Global Ratings credit analyst Michael Mooney. "We expect available reserves to improve in fiscal 2017 due to one-time measures the district has taken, but we believe structural imbalance will again occur in fiscal 2018. However, we do not expect available fund balance to turn negative over our two-year outlook horizon."

The district's full-faith-and-credit GO pledge secures the bonds. The Act 1 Index under Pennsylvania commonwealth statute restricts a district's ability to raise the tax levy higher than a certain index, which the Pennsylvania Dept. of Education determines. Despite these limitations, we did not make a rating distinction for the limited-tax GO pledge since we believe the district possesses the financial stability necessary to sustain identical ratings on its unlimited and limited tax GO bonds.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at for further information. Complete ratings information is available to subscribers of RatingsDirect at and at All ratings affected by this rating action can be found on the S&P Global Ratings' public website at Use the Ratings search box located in the left column.

Latest Press Release

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Fitch Rates EXIM#s USD Senior Notes #BBB+(EXP)#

Fitch Ratings has assigned an expected rating of 'BBB+(EXP)' to Export-Import Bank of Thailand's (EXIM, BBB+/Stable) five-year senior unsecured notes of up to USD300 million. The notes will be issued under the bank's USD1.5 billion medium-term note (MTN)...

KTC joins hands with partners to launch new payment method Garmin Pay.

Mrs. Pittaya Vorapanyasakul (right center), Executive Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited together with Mr. Krairop Luang U-Thai (left center), General Manager, GIS Company Limited, Miss Aileen Chew...

Photo Release: Newly redesigned K-Cash Connect Plus website to facilitate business customers

Mr. Silawat Wantivisat, KBank Executive Vice President, introduced the newly redesigned K-Cash Connect Plus website, which is more user-friendly for business customers to facilitate their online financial transactions and data verification with greater...

Related Topics