Moody's Investors Service said has assigned a Aa3 underlying rating to Franklin County School District No. 1 (Pasco), Wash.'s unlimited tax general obligation bonds, 2013, and upgraded to Aa3 from A1 the underlying rating on the district's $122.7 million in outstanding parity debt.
The bonds are secured by the district's full faith, credit and unlimited property tax pledge. The current offerings will also receive the Aa1 enhancement rating of the Washington School Bond Guarantee Program, which currently carries a negative outlook and reflects the state's rating.
Proceeds from the current issue will be used to finance various capital projects.
The upgrade to Aa3 from A1 reflects the district's moderately sized and growing tax base and multiple years of strong financial operations that have resulted in sizeable reserves.
The rating also incorporates below-average socioeconomic measures and a high direct debt burden.