$2.5 million of debt issuance
New York, May 08, 2013 --
Moody's Rating
Issue: General Obligation Bonds, Series 2013; Rating:
Baa2; Sale Amount: $2,500,000; Expected
Sale Date: 05-14-2013; Rating Description:
General Obligation
Opinion
Moody's Investors Service has assigned a Baa2 initial rating to
Glide Rural Fire Protection District, Oregon in conjunction with
the sale of General Obligation Bonds, Series 2013. The bonds
are secured by the district's full faith, credit, and
unlimited property tax pledge. Proceeds will finance construction
of a new fire station and a substation.
SUMMARY RATING RATIONALE
The Baa2 rating primarily reflects the district's very modestly-sized
and rural tax base, still sizable reserves and liquidity despite
expected near-term declines for capital needs, and a low
debt burden with slow amortization.
STRENGTHS
- Reliance on regular operating property tax to support operations
- Measure 50 provisions that support assessed valuation growth
CHALLENGES
- Small, rural service area
- Near-term, anticipated drawdown of cash and reserves
for capital needs
- Very small scale of operations
WHAT COULD MAKE THE RATING GO UP
- Protracted RMV growth to levels more in-line with rated
peers
- Appreciation in socioeconomic measures
- Maintenance of outsized liquidity relative to operating and pay-go
capital needs
WHAT COULD MAKE THE RATING GO DOWN
- Significant, additional RMV declines
- Deterioration of the district's financial position to narrow
liquidity than expected in the near-term
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was General Obligation Bonds
Issued by U.S. 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.
Patrick Liberatore
Associate Analyst
Public Finance Group
Moody's Investors Service, Inc.
One Front Street
Suite 1900
San Francisco, CA 94111
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Dan Steed
Asst Vice President - 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 Baa2 initial rating to Glide Rural Fire Protection District, Oregon's G.O. unlimited tax bonds