Moody's Investors Service said it has assigned a A1 underlying rating to Hattiesburg Public School District, Miss.'s $3.44 million general obligation refunding bonds, Series 2013, and downgraded the district's outstanding parity debt to A1 from Aa3.
Proceeds from the sale of the bonds will be used refinance the district's series 2003A bonds for a net present value savings.
The bonds are secured the full faith and credit of the district and the avails of an unlimited, continuing, and direct special tax to be levied annually by the City Council, Hattiesburg, Miss., on all taxable property within the geographical limits of the district.
The downgrade and assignment of the A1 rating reflects the district's ongoing imbalance of general fund operations that is expected to continue into the near future. The A1 rating also incorporates the district's medium sized tax base that experienced fluctuations in recent years, below average socio-economic profile, and manageable debt burdens.