A major credit ratings agency has significantly downgraded the Clark County School District.
A new report by Fitch Ratings dropped the score by three rungs. The Nevada Independent reportsthe districts limited budgeting flexibility and modest funding reserves contributed to the drop from an A+ to BBB+.
The ratings agency revised its criteria last year and put a greater focus on financial resilience in economic downturns as well as revenue growth prospects and control.
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To improve its bond rating, the authors of the report said the school district would need to show a sustained increase in reserves to balance the district’s relatively low budget flexibility.