Moody's Investors Service said it has upgraded the rating on Glenwood Community School District, Iowa's outstanding debt to Aa3 from A1, affecting $17.2 million of post-sale general obligation (GO) debt.
Moody's also assigned a Aa3 rating to the district's $7.1 million general obligation school refunding bonds, Series 2015.
Debt service on the bonds is secured by the district's dedicated debt service levy that is unlimited by rate or amount. Proceeds from the sale will crossover advance refund certain maturities of the district's Series 2007 and Series 2009 general obligation school bonds for estimated savings of 7% of refunded par.
The upgrade to Aa3 from A1 reflects the district's modestly-sized but growing tax base located south of the Omaha (Aa1 negative) and Council Bluffs (Aa2) metro region; above average socioeconomic indices; strong financial trends and healthy general fund reserves which are expected to be maintained going forward; manageable debt burden; and moderate exposure to unfunded pension liabilities of a cost-sharing retirement system.
