Hallsville ISD, Texas, Upgraded to A1 by Moody's

Moody's Investors Service has upgraded Hallsville Independent School District, Texas's underlying general obligation debt to A1 from A3.

At the same time, Moody's has assigned a A1 to the district's $3.8 million unlimited tax refunding bonds, Series 2013. Concurrently, Moody's also assigned the Aaa enhanced rating to the refunding bonds based on a guarantee by the Texas Permanent School Fund (PSF) program.

Moody's maintains a stable outlook on the district's debt portfolio. The rating upgrade and assignment affects approximately $84.6 million in parity debt. Proceeds from the current sale will refund certain maturities of the district's Series 2004 bonds for a net present value savings.

The bonds are secured by an annual ad valorem tax, levied against all taxable property in the district without legal limitation as to rate or amount.

The A1 incorporates the stabilization of assessed values after a significant reduction as a result from reevaluation/reclassification pertaining to recent taxpayer litigation.

The rating upgrade and assignment also reflects the district's improved financial reserve position after a period of financial stress related to the taxpayer litigation.

The A1 rating also reflects the district's above average direct debt burden, concentrated tax base, and favorable socioeconomic indices. The maintenance of the stable outlook reflects the anticipation that satisfactory financial operations and economic growth will continue in the near future.

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