Gilboa-Conesville Central School District (Aa3) has maintained strong reserves and liquidity over several years. The district is located in a rural, largely agricultural area that has seen tax base growth driven by improving and values. Inclusive of the new issuance, Gilboa-Conesville Central School District's long term liabilities and fixed costs are manageable.

We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. The coronavirus crisis is not a key driver for this rating action but could affect the district in fiscal 2021 which begins July 1. The district depends on state aid for approximately 31.5% of its operating revenue. The State of New York (Aa1 negative) is currently experiencing significant declines and delays in income tax and sales tax revenue. Unless the federal government provides additional assistance, the state will likely reduce state aid to school districts in 2021 possibly resulting in use of some of the district’s financial reserves, property tax increases and/or expense cuts. The situation surrounding coronavirus is rapidly evolving and the longer term impact will depend on both the severity and duration of the crisis. If our view of the credit quality of the school district changes, we will update the rating and/or outlook at that time.