NEW YORK - Moody's Investors Service said it has upgraded Chesterfield County School District, S.C.'s general obligation unlimited tax rating to Baa1 from Baa2 and assigned an enhanced Aa1 rating and Baa1 underlying rating to the $25.8 million general obligation refunding bonds, series 2010.
The upgrade to Baa1 affects $31.3 million in pre-refunded parity debt.
Concurrently, Moody's upgraded the county's installment purchase revenue bonds, series 2006 to Baa2 from Baa3, affecting $22.1 million in debt. The current issue is secured from the district's unlimited ad valorem tax pledge.
The upgrade reflects the school district's improved financial position that is expected to remain stable and solid management reflected in conservative budgeting practices and satisfactory reserve levels.
The Baa1 rating also reflects the district's limited autonomy to raise its operating millage, given that the tax levy may not increase more than 8% from the prior fiscal year without a referendum, moderately size tax base with below-average wealth indicators and an above average debt burden that is expected to remain elevated.
The current issue is expected to generate net present value savings of $1.82 million or 6.8% of the refunded principal and there is no extension of maturity. The debt is structured to generate level savings over the life of the bonds.
