Aa3 RATING APPLIES TO $27.5 MILLION OF POST-SALE GOULT DEBT
New York, October 26, 2011 -- Moody's Rating
Issue: General Obligation Refunding Bonds, Series 2011;
Rating: Aa3; Sale Amount: $8,815,000;
Expected Sale Date: 10/26/2011; Rating Description: General
Obligation Unlimited Tax
Opinion
Moody's Investors Service has assigned a Aa3 rating to Lansing Unified
School District No. 469's (Leavenworth County, KS) $8.8
million General Obligation Bonds, Series 2011. Concurrently,
Moody's has affirmed the Aa3 rating on the district's outstanding general
obligation debt, affecting $27.5 million post-sale.
SUMMARY RATING RATIONALE
The bonds are secured by the district's general obligation unlimited tax
pledge. Proceeds of the bonds will refund the district's outstanding
general obligation bonds, Series 2005-A for estimated net
present value savings. The Aa3 rating reflects the district's moderately-sized
tax base that benefits from nearby federal employment centers, well
managed operations within the confines of the state's restrictive funding
structure, and a leveraged debt profile which reflects the needs
of a growing district.
STRENGTHS
-Growing enrollment; benefits from relatively stable regional
economy
-Sound financial operations with recent increases in reserve levels
CHALLENGES
-Above average debt burden
-Kansas' restrictive school funding structure limits district's
ability to grow reserves
WHAT COULD CHANGE THE RATING UP
-Increasing reserve levels as allowable under state law
-Significant expansion in taxbase leading to continued growth in
enrollment
WHAT COULD CHANGE THE RATING DOWN
-Declines in fund balance and/or liquidity
-Deterioration of the local economy and/or valuation
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was General Obligation Bonds
Issued by U.S. Local Governments published in October 2009.
Please see the Credit Policy page on www.moodys.com for
a copy of this methodology.
REGULATORY DISCLOSURES
The Global Scale Credit Ratings on this press release that are issued
by one of Moody's affiliates outside the EU are considered EU Qualified
by Extension and therefore available for regulatory use in the EU.
Further information on the EU endorsement status and on the Moody's office
that has issued a particular Credit Rating is available on www.moodys.com.
For ratings issued on a program, series or category/class of debt,
this announcement provides relevant regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides relevant regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides relevant regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
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the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Soo Yun Chun
Associate Analyst
Public Finance Group
Moody's FIS Domestic Sales Office - Chicago IL
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Rachel Cortez
Vice President - Senior Analyst
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
MOODY'S ASSIGNS Aa3 RATING TO LANSING USD 469'S (LEAVENWORTH COUNTY, KS) $8.8 MILLION GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011