Fitch downgrades Beaumont ISD's bond rating; over $4 million embezzled

Fitch Ratings downgraded Beaumont ISD's bond rating Monday and assigned a negative rating watch to the district almost two weeks after another ratings agency made a similar assessment.

Fitch downgraded the district's bond rating because of "significant gaps in internal control and financial management practices" revealed by the FBI's ongoing investigation into alleged embezzlement by the former finance director and comptroller.

A federal grand jury indicted the two finance employees in January on charges of embezzling more than $4 million.

Moody's Investors Service lowered BISD's bond rating by two notches Feb. 18 and assigned the school district a negative outlook, which means it expects BISD to face further challenges in the near future.

More at http://www.beaumontenterprise.com/news/article/Fitch-downgrades-BISD-s-bond-rating-5288457.php .

Related threads:
http://www.democraticunderground.com/107814318
http://www.democraticunderground.com/107811011