Moody's Investors Service recently assigned an “A1 underlying rating” to Southwest Local School District for the $60.8 million School Improvement Unlimited Tax General Obligation Bonds, Series 2018A.
The $1.0 million School Improvement Unlimited Tax General Obligation Bonds, Series 2018B also received the A1 rating. In addition, the bond credit rating company assigned a “Aa2 enhanced rating to the Series 2018A bonds.”
The report, which was released in late March 2018, cited district strengths as “healthy reserves and liquidity” and “multi-year trend of tax base growth,” noting that the modestly-sized tax base continues to benefit from residential developments.
According to Moody’s report, “Southwest Local Schools benefits from well-managed financial operations, with healthy liquidity remaining a key strength. The tax base is modest but growing, with a solid demographic profile. Main challenges include a high debt burden as the district expands to accommodate enrollment growth and an elevated pension burden.”
The report also noted that Moody’s, “maintain the A1 rating on the district's outstanding general obligation unlimited tax (GOULT) and general obligation limited tax (GOLT) debt. Post-sale, the district will have $73.5 million of GO debt outstanding, all rated by Moody's, and $9.9 million in short-term, unrated bond anticipation notes.”
According to Moody’s, “The A1 underlying rating reflects the district's modestly-sized tax base with a sound socioeconomic profile, solid reserve levels resulting from a trend of positive operations and high debt and pension burdens. The Aa2 enhanced rating on the current bonds reflects the Aa2 OSDCE programmatic rating, which is one notch below the State of Ohio's Aa1 GO rating.”
To view the report and other please visit the Financial news of the SLSD website.