Rating affects approximately $63 million in debt
New York, May 07, 2013 --
Moody's Rating
Issue: 2013 General Obligation Refunding Bonds, Series A (Federally
Tax-Exempt); Rating: Aa1; Sale Amount: $1,450,000;
Expected Sale Date: 05-15-2013; Rating Description:
General Obligation
Issue: 2013 General Obligation Refunding Bonds, Series B (Federally
Taxable); Rating: Aa1; Sale Amount: $23,865,000;
Expected Sale Date: 05-15-2013; Rating Description:
General Obligation
Issue: 2013 General Obligation Refunding Bonds, Series C (Federally
Tax - Exempt, 2013 Crossover Refunding); Rating:
Aa1; Sale Amount: $37,650,000; Expected
Sale Date: 05-15-2013; Rating Description:
General Obligation
Opinion
Moody's Investors Service has assigned an Aa1 rating to Cupertino Union
School District's $63 million of 2013 General Obligation Bonds
Refunding Bonds. The bonds are secured by an unlimited property
tax pledge of the district. Proceeds from the current offering
will be used to 1) advance refund, on a crossover basis, the
district's Election of 2001, Series B bonds; 2) advance
refund the district's Election of 2001, Series C Bonds;
and 3) current refund the district's 2005 General Obligation Revenue
Bonds
RATINGS RATIONALE
The Aa1 rating reflects the district's exceptionally large and growing
Silicon Valley tax base, very healthy socioeconomic indicators of
district residents, the maintenance of strong finances, and
a manageable debt burden.
STRENGTHS
- Very large and growing tax base in Silicon Valley
- Above average wealth and socio-economic levels
CHALLENGES
- Additional budget cuts may be necessary to preserve fiscal position
-Financial uncertainty facing all California school districts
WHAT COULD MOVE THE RATING-UP
- Strong financial performance that contributes to sustained growth
in reserve levels
- Continued growth in tax base and overall wealth and socioeconomic
levels
WHAT COULD MOVE THE RATING-DOWN
- Deterioration in the district's financial position
- Protracted decline in the district's assessed valuation
The principal methodology used in this rating was General Obligation Bonds
Issued by US Local Governments published in April 2013. Please
see the Credit Policy page on www.moodys.com for a copy
of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain 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 certain 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 certain 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
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Gregory W Lipitz
Vice President - Senior Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Kevork Khrimian
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 Aa1 to Cupertino Union School District's (CA) $63 million of 2013 General Obligation Bonds Refunding Bonds