NJ School District Downgraded After Bankruptcy Threat (1)

The Toms River Regional School District had its bond rating dropped one notch by S&P Global Ratings, a move that comes after school officials threatened to file for bankruptcy.

The rating company cut the local board of education’s grade to A- from A, according to areport on Tuesday. While removing the credit from negative CreditWatch, S&P assigned a negative outlook to the rating. The agency cited New Jersey’s intervention in the budget process and “the recent use of unsustainable one-time budget-balancing measures, including extraordinary tax rate increases and land sales” as reasons for the downgrade.

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