S&P: Winnebago & Boone Counties School District 205, IL 'AA-' GO Rating Put On Watch Negative After Missed Interest Payments
The rating action reflects S&P Global Ratings' opinion of the district's interest payment delinquency.
The rating service recognizes the district missed an interest rate payment for its series 2013 GO school bonds, series 2015A GO limited-tax school bonds, and series 2015B GO school bonds due to an administrative clerical error rather than a tax levy error or the district not having sufficient funds. Payments were due on Aug. 1, 2016. Management made the payments two business days later on Aug. 3, 2016.
While S&P Global Ratings notes the district is current with all payments, the CreditWatch placement reflects its potentially changed view of management's practices, internal controls, liquidity, and finances. If the rating service discovers the district's financial management practices have significantly weakened or if there has been a decline in internal controls, flexibility, or liquidity that contributed to the interest payment delinquency, we could lower the rating.