Moody's Investors Service said it has assigned an A2 underlying rating to Gulfport School District, Miss.'s $41.24 million special obligation bonds, Series 2014, and downgraded to A2 from A1 the rating on the district's outstanding parity debt affecting approximately $4.13 million.
Bond proceeds will be used to construct a new high school and additions to the district's elementary schools.
The bonds are secured by an annual ad valorem tax, levied against all taxable property in the district without legal limitation as to rate or amount.
The downgrade to A2 reflects the continuing trend of decreasing tax base valuation, a history of narrow reserves limiting the district's financial flexibility, as well as above average debt burden with slow principal amortization.
The A2 rating also incorporates the district's high pension burden and below average socioeconomic profile.
