Moody's Investors Services said it has upgraded the rating on Lake Placid Central School District, N.Y.'s outstanding general obligation debt to A1 from A2.
The district has $7.17 million of outstanding debt, which is secured by a general obligation pledge of ad valorum taxes as limited by the Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).
The upgrade reflects the district's significantly improved financial position, as strong tax base growth fueled by demand for second homes in the Adirondacks led to increased property tax revenues and fund balance growth from 2008 to 2012.
Moody's believes that the district's financial performance will remain stable at this current, heightened level. The rating change also incorporates the guarantee of the district's property tax revenues, modest debt burden, average wealth levels, and tourism-based economy, which has experienced some declines since 2011.