Moody's Investors Service said it has upgraded the rating to Aa2 from Aa3 on Plainedge Union Free School District, N.Y.'s $35 million of outstanding general obligation debt.
Concurrently, Moody's has assigned a Aa2 rating to the district's $4.2 million refunding serial bonds -- 2012 Series A, $17.2 million refunding serial bonds -- 2012 Series B and $4.8 million refunding serial bonds -- 2012 Series C.
The bonds are general obligations secured by the district's unlimited ad valorem property tax pledge and will refund the districts Series 2003A, 2003B and 2004 bonds with an expected net present value savings of $1.3 million, or 4.8% of refunded principal, without extending the original maturities.
The Aa2 rating reflects the district's relatively sizeable tax base, healthy financial operations supported by sizeable reserves, manageable debt position, and above average socio-economic indicators.
The upgrade to Aa2 is a result of the district's ability to generate sizeable operating surpluses and strengthen reserves over the last five years.
