Moody's Investors Service said it has upgraded to Aa3 from A2 the rating on Cloverdale Unified School District, Calif.'s outstanding general obligation bonds.
This action concludes a review for possible upgrade that Moody's had initiated on January 15 in conjunction with its new local government general obligation methodology. Moody's also assigned an Aa3 rating to the district's general obligation bonds 2010 Election, Series C.
The bonds are secured by an unlimited property tax pledge of the district. The $5.5 million offering will finance the modernization, construction and improvement of school facilities.
The upgraded Aa3 rating reflects the district's significantly improved financial profile and positive multi-year financial trends. The district's strong assessed value (AV) per capita also contributed to the upgrade.
Other key considerations in the rating include the district's somewhat above-average residential wealth levels, significant taxpayer concentration, and average direct debt burden. The rating also reflects the strength of the voter-approved, unlimited property tax pledge securing the bonds and the well-established levy and collection history for the debt service levy.
