Jim Thorpe Area School District, Pa., Upgraded to A1 by Moody's

Moody's Investors Service said it has assigned an A1 underlying rating and A2 enhanced rating with stable outlook to Jim Thorpe Area School District, Pa.'s $19.6 million general obligation bonds, Series A of 2015 and $3.2 million general obligation bonds, Series B of 2015.

Concurrently, Moody's upgraded the underlying rating to A1 from A2 on $14.3 million of outstanding parity debt and affirmed the outstanding enhanced ratings.

The bonds are secured by the district's general obligation unlimited tax pledge given that the debt is exempt from Act 1. Proceeds from this issue will be used to refund the district's $23.8 million Series 2005 bonds for an estimated net present value savings of $2.5 million or 10.6% of the refunded principal with no extension of maturity and the majority of the savings taken upfront.

The upgrade to A1 reflects the significantly improved financial position due to three audited surpluses and an additional surplus anticipated in 2014. The A1 rating also reflects the district's moderately-sized tax  base, above average debt burden and low pension burden.

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