Moody's Investors Service said it has upgraded Lake George Central School District, N.Y., to Aa2 from Aa3.
At the same time, Moody's has assigned the Aa2 rating to the district's $2.2 million general obligation school district refunding bonds, 2013. The upgrade affects approximately $2.5 million bonds secured by the district's general obligation unlimited ad valorem tax pledge.
Proceeds from this issue will be used to refinance a portion of the district's general obligation bonds, Series 2001 for an expected net present value savings of $91,261, or approximately 4.1% of refunded principal, with no extension of maturity and savings taken over the life of the bonds.
The upgrade to Aa2 reflects strong financial management practices over the past several years, which have resulted in maintenance of healthy reserve levels. The rating also reflects the district's moderately sized tax base that has experienced declines as a result of softening in the regional housing market, socio-economic levels that are above state and national norms, and low debt burden.
