Delaware City School District, Ohio, Upgraded to Aa3 by Moody's

Moody's Investors Service said it has upgraded to Aa3 from A1 the underlying rating on Delaware City School District, Ohio.

The Aa3 rating has been assigned to the district's $10 million school facilities construction and improvement bonds, Series 2014. The bonds are secured by the district's general obligation unlimited tax pledge which benefits from a dedicated levy unlimited as to rate or amount.

The bonds represent the district's second phase of capital borrowing approved by voters in May 2014. Voters authorized a total of $50 million in general obligation borrowing to equip and construct additions and renovations to the district's school facilities in order to better accommodate the district's growing enrollment.

Upon sale of the bonds the district will have a total of $52.5 million of general obligation debt outstanding and approximately $20 million of remaining borrowing authority.

The Aa3 rating is based on the district's improved financial performance following a November 2011 voter approved property tax increase. Also reflected is the district's moderately sized tax base and growing community with strong ties to the Columbus metro; its slightly above average resident wealth characteristics; increasing enrollment trends which have necessitated a relatively sizable amount of debt for capital projects; and exposure to two underfunded pension plans.

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