August 27, 2013 / 8:53 PM / 4 years ago

UPDATE 1-Moody's cuts Michigan's Grosse Pointe Public School GOs

Aug 27 (Reuters) - Moody’s Investors Service on Tuesday cut the general obligation bond rating of Michigan’s Grosse Pointe Public Schools to Aa2 from Aa1, affecting about $47.8 million of debt.

The downgrade reflects the district’s weakened financial position, the rating agency said in a statement.

Moody’s also assigned the district a negative outlook, citing its “modest reserve levels which provide limited flexibility to offset potential budget variations.”

Grosse Pointe is a small affluent suburb bordering Detroit in Wayne County, with a population of just more than 5,000.

“Continuing to support the Aa2 rating are a sizable tax base, strong macroeconomic profile and manageable-debt burden,” Moody’s said.

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