Moody's Investors Service said it upgraded to Aa3 the underlying rating of the Darlington County School District, S.C., affecting $36.9 million of debt outstanding.
Moody's assigns a Aa3 underlying and a Aa1 enhanced ratings to the district's $21.5 million general obligation advanced refunding and improvement bonds, Series 2014.
The upgrade to Aa3 reflects solid reserve levels, despite near-term declines, bolstered by strong fiscal management and oversight. The rating further reflects the sizable, albeit rural, tax base with significant taxpayer concentration, below-average wealth levels, and an average debt burden.
Proceeds from the current sale will provide $5 million of original financing while refunding $18 million in 2005 bonds with an estimated net present value savings of 30% on refunded debt.
The bonds will be secured by the district's unlimited full, faith, credit and taxing power. Additionally, the $18 million bonds due in years 2016-2019 are expected to be paid from a 1% sales tax imposed within the district with the district's unlimited G.O. pledge as backup.
