OCEANSIDE: School district's bond rating downgraded
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Oceanside Unified School District's credit rating was downgraded slightly Friday by a bond rating agency that said the district's budget problems were troubling.
Moody's Investors said the lower rating was caused by "growing fiscal and economic pressures that have combined to weaken the district's credit quality."
Bond ratings affect the district's cost of borrowing money through the sale of bonds.
The lower the rating, the higher the interest rate the district must pay investors who buy the bonds.
The rating agency downgraded the district's bond rating from Aa2 to Aa3.
The highest rating is Aaa, given to investments considered to be minimal risk.
The lowest rating is C, given to bonds that are in default with little chance investors will recover their money.
District officials could not be reached for comment Friday on Moody's announcement.
Last week, Oceanside Unified trustees voted to cut jobs and scale back work hours as part of a worst-case plan for balancing next year's budget.
The plan would affect all of the approximate 900 classified employees including bus drivers and security guards.
It would shorten the work year by five days, cut the hours of hundreds of employees and result in the layoffs of about 50 people.
The district board won't approve a final budget until June, but must make preliminary cuts sooner to meet certain deadlines and being planning.
