Moody’s Assigns Negative Aa3 to Kentucky District

Moody’s Investors Service has assigned an underlying Aa3 and an enhanced Aa3 with a negative outlook to $35.3 million  of Jefferson County, Ky., School District Finance Corp. revenue refunding bonds, Series 2009A.

Concurrently, Moody’s has also ­affirmed its Aa3 underlying rating on the school district’s $402 million of ­outstanding parity debt, including the current issue.

The revenue refunding bonds are secured by lease payments from the Jefferson County Board of Education from any legally available revenues, under an automatically renewable, annually terminable lease.

 Bond proceeds will refund the School District Finance Corp.’s Series 1999A bonds for savings and no extension of the final maturity. The Aa3 underlying rating reflects the district’s regionally important and diversified local economy, above-average wealth levels, satisfactory financial position, and average debt levels, Moody’s analysts said.

The enhanced rating with a negative outlook reflects Moody’s assessment of the additional security provided by the Kentucky School District Enhancement Program.

The negative outlook on the enhanced rating reflects the negative outlook on the commonwealth’s long-term rating.