Moody's Investors Service said it has upgraded the underlying rating on Chestnut Ridge School District, Pa.'s $17.3 million of outstanding parity debt to A1 from A2.
The agency assigned an A1 underlying rating and an A1 enhanced rating with a stable outlook to the district's $9.6 million general obligation bonds, Series of 2014.
The current issue is secured by the school district's general obligation limited tax pledge, as debt service is not exempt from the limitations of Special Session Act 1 (Taxpayer Relief Act). The bond proceeds will be used to advance refund the Series 2009 bonds for an estimated net present value savings of $320,000, equal to 3.5% of refunded principal, without extension of maturity.
The A1 underlying rating reflects the district's stable financial position with strong reserves, modest tax base with below-average demographics, and above-average debt burden.
