Aa3 rating applies to $32.8 million of outstanding parity debt including this sale
New York, January 10, 2013 --
Moody's Rating
Issue: School District Refunding Serial Bonds of 2013; Rating:
Aa3; Sale Amount: $9,230,000; Expected
Sale Date: 01-17-2013; Rating Description:
General Obligation
Opinion
Moody's Investors Service has assigned a General Obligation rating of
Aa3 to the West Genesee Central School District's (NY) $9.23
million School District Refunding Serial Bonds of 2013. The Aa3
rating applies to $32.8 million of outstanding parity debt,
including this sale. The bonds are secured by the district's general
obligation, unlimited tax pledge.
Proceeds of the current sale will be used to advance refund the district's
Series 2006 A and B bonds for estimated net present value savings of $335,127,
or roughly 3.6% of refunded principal.
SUMMARY RATINGS RATIONALE
The Aa3 rating incorporates strong budget management, manageable
debt levels, and solid financial operations with reserve levels
modestly lower than peers'. The rating also reflects a moderately
sized tax base with socio-economic characteristics consistent with
the current rating category.
STRENGTHS:
-Stable financial operations with adequate reserves
-Growing tax base
CHALLENGES:
-Pressure on tax base from tax appeals
- Above-average debt burden
WHAT COULD CHANGE THE RATING - UP
-Sustained build-up in reserves
- Strengthening of tax base in the long term
WHAT COULD CHANGE THE RATING - DOWN
-Creation of structural imbalance or faster-than-expected
drawdown of reserves
-Significant contraction in tax base
RATING 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
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 the credit ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Please see the ratings disclosure page on www.moodys.com
for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on www.moodys.com
for information on (A) MCO's major shareholders (above 5%) and
for (B) further information regarding certain affiliations that may exist
between directors of MCO and rated entities as well as (C) the names of
entities that hold ratings from MIS that have also publicly reported to
the SEC an ownership interest in MCO of more than 5%. A
member of the board of directors of this rated entity may also be a member
of the board of directors of a shareholder of Moody's Corporation;
however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process
page on www.moodys.com for further information on the meaning
of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time
before Moody's ratings were fully digitized and accurate data may not
be available. Consequently, Moody's provides a date that
it believes is the most reliable and accurate based on the information
that is available to it. Please see the ratings disclosure page
on our website www.moodys.com for further information.
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.
Dan Seymour
Associate 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
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 the West Genesee Central School District's (NY) $9.23 million School District Refunding Serial Bonds of 2013