Moodys downgrades Wheeling Dist. 21 credit rating

Citing "recent substantial operating deficits," Moody's is downgrading General Obligation Unlimited Tax and General Obligation Limited Tax bonds from an Aa2 rating to Aa3 for Wheeling Township Elementary District 21.

The rating change is a result of the district's funding reserves and recent deficit spending, Assistant Superintendent for Finance Mary Werling said.

District 21 has about 8 percent of its budgeted needs in reserve, Werling said.

"School District 21 has achieved $2.5 million in cost savings for the current fiscal year, and has $3 million in budget changes planned for each of the next two fiscal years," Werling said. "These actions ensure a balanced budget and are projected to continue to eliminate the need for deficit spending."

According to Moody's, groups with Aa ratings are "high quality and are subject to very low credit risk."