Schools confront lower credit ratings

Capital News Service
LANSING — Forty-three school districts across Michigan are facing the problem of a downgraded credit rating by Moody’s Investor Service this year. A district’s credit rating directly relates to the cost of borrowing money for bonds to pay for school construction, renovation, and technology. Lower ratings mean higher interest costs. However, the downgrading may not have substantial impact on either construction or bond issuing, according to Sandra Weir, the finance director of the Chippewa Hill School District. “Actually the downgrade will be still considered as tapering,” Weir said.