Rating Action:
Moody's assigns Aa1 to Mount Lebanon SD, PA's $51.8M 2015 GO bonds
Global Credit Research - 08 Oct 2015
Rating applies to $92.4M in rated debt, post-sale
New York, October 08, 2015 --
Moody's Rating
Issue: General Obligation Bonds, Series of 2015; Rating: Aa1; Sale Amount: $51,815,000; Expected Sale Date: 10-19-2015; Rating Description: General Obligation
Opinion
Moody's Investors Service has assigned a Aa1 rating to the Mount Lebanon School District, PA's $51.8 million General Obligation Bonds, Series of 2015. Concurrently, Moody's has affirmed the Aa1 on the district's $92.4 million in outstanding general obligation debt.
SUMMARY RATING RATIONALE
The Aa1 rating reflects the district's strong finances and large tax base. The rating also incorporates the district's above-average socioeconomic profile.
OUTLOOK
Outlooks are usually not assigned to local government credits with this amount of debt outstanding.
WHAT COULD MAKE THE RATING GO UP
- Positive financial operations leading to stronger General Fund reserves
- Substantial growth in the district's tax base and socioeconomic indicators
WHAT COULD MAKE THE RATING GO DOWN
- Material deterioration of the tax base and socioeconomic indices
- Structural imbalance leading to decreases in reserves and liquidity
OBLIGOR PROFILE
The K-12 school district is located 5.9 miles south of Pittsburgh. The district serves 5,305 students.
2 comments:
More debt, more debt, and more debt! When is the district going to cut spending and stop relying on the taxpayers to bail them out???!! At some point, no one will not want to move here as the taxes are already too high. Do the administrators not understand that the global economy has an impact on jobs, federal and state taxes, and housing projections? Job growth has been stagnant and very slow growth. Our economy is still struggling. It has been very slow growth since The Great Recession. And the issue of ISIS in the Middle East spreading to other foreign countries. Our administrators do not live in reality. They need to move on. We need new blood.
Elaine, this would be of interest to your readers. All about refinancing debt
and wrapped bonds. Anonymous.
http://www.portal.state.pa.us/portal/server.pt?open=18&objID=1248038&mode=2
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