Alum Rock USD Ratings Downgraded


Standard & Poors downgrade the Alum Rock USD CA general obligation debt rating to BBB+ from AA- and its certificate of participation debt rating to BBB from A+.  S&P also signaled that an additional cut in rating or potentially withdrawing the rating entirely.

S&P cited the District’s inability to reconcile its books in a timely manner and difficulties obtaining information from District management.

The District has only received conditional approval of its 201-2018 budget from the Santa Clara County Office of Education.  Full approval is required for the District to issue new bonds to fund ongoing construction.  In addition, a June 2017 State of California audit criticized the District for poor budget and projected management and warned that the District may be vulnerable to fraud, misspending and mismanagement.

The Mercury News article