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.
