NEW YORK - Moody's Investors Service said it has upgraded to A3 from Baa1 the rating of Jefferson Davis Parish School Board Sales Tax District No. 1, La.'s sales tax school bonds.
The upgrade to A3 affects roughly $5.38 million in outstanding sales tax revenue debt.
The bonds are secured by the proceeds of a 1/2% sales and use tax now being levied and collected in the district for a period of 25 years from and after January 2002, which was authorized by voters in November 2001.
The rating upgrade reflects the district's modestly sized economy which remains relatively stable, adequate legal provisions for the sale, and current pledged revenues that provide solid coverage of maximum annual debt service. The rating also reflects the relatively stable sales tax collections with some historic year-over-year declines which includes volatility due to the impact of Hurricane Katrina.