Affirms Aaa rating on $65.2 million of outstanding GO debt, including the current issue
New York, January 07, 2013 --
Moody's Rating
Issue: General Obligation Bonds, Series 2013; Rating:
Aaa; Sale Amount: $10,000,000; Expected
Sale Date: 1-11-2013; Rating Description:
General Obligation
OPINION
Moody's Investors Service has assigned a Aaa rating to Great Valley
School District's (PA) $10 million General Obligation Bonds,
Series 2013. Concurrently, Moody's has affirmed the
Aaa rating on the district's $65.2 million of general
obligation debt, including the current issue. The outlook
for the rating is stable. The current offering will currently refund
a portion of the district's Series 2005 general obligation bonds
and advance refund a portion of its Series B of 2009 general obligation
bonds for an estimated net present savings of 6% of refunded principal,
with no extension in maturity. The bonds are secured by the district's
general obligation limited tax pledge as a result of Pennsylvania's
Special Session Act 1 (Taxpayer Relief Act), which restricts school
districts' ability to increase their property tax millage beyond an annual
index.
SUMMARY RATING RATIONALE
The assignment of Moody's highest rating reflects the district's
large tax base with above average wealth levels, a manageable debt
burden and strong financial operations. The stable outlook reflects
our belief that the district will maintain stable financial operations
given a history of conservative budgeting practices, which have
resulted in healthy financial reserves.
STRENGTHS
-Large, affluent tax base
-Manageable debt burden
-Healthy financial reserves
CHALLENGES
-Increased fixed costs including pension and health care
OUTLOOK
The stable outlook reflects Moody's belief the district will maintain
stable financial operations given management's history of conservative
budgeting that has resulted in an ample financial cushion.
What could make the rating go DOWN:
-Increased debt burden
-Deterioration of General Fund reserves
-Significant and protracted declines in the district's tax
base
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.
Shannon McCue
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
Michael D'Arcy
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 Aaa rating to Great Valley School District's (PA) $10 million General Obligation Bonds, Series 2013; outlook is stable