Moody's Investors Service said it has upgraded to Aa1 from Aa2 the underlying rating on the Carle Place Union Free School District, N.Y.'s outstanding $11.4 million bonds secured by the district's general obligation unlimited ad valorem tax pledge.
Moody's assigned a Aa1 underlying rating to school district's $7.4 million general obligation refunding bonds, 2013.
Proceeds from this issue will be used to refinance a portion of the district's general obligation bonds, Series 2004 for an expected net present value savings of $590,783, or approximately 8.72% of refunded principal, with no extension of maturity and savings taken over the life of the bonds.
The upgrade to Aa1 reflects strong financial management practices over the past few 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 result of softening in the regional housing market, socio-economic levels that are above state and national norms, and low debt burden.