NEW YORK - Moody's Investors Service said it has assigned an A2 rating to the upcoming sale of Decatur Independent School District, Texas's $15.7 million in unlimited tax refunding bonds, series 2009, and upgraded to A2 from A3 the rating on the district's $77 million in outstanding general obligation debt.
The rating actions reflect the district's rapidly expanded tax base while also considering industry concentration risk, strong reserve levels supported by a formal policy, and a slightly elevated debt burden. Proceeds from the sale of the bonds will refund a portion of the district's outstanding debt for an estimated debt service savings of $1 million or 6.7% of the refunded bonds.
The bonds constitute direct obligations of the district, payable as to principal and interest from an annual ad valorem tax levied against all taxable property within the district, without legal limit as to rate or amount.
