Moody's Investors Service said it has upgraded the Lexington County Rural Recreation District, S.C.'s general obligation rating to Aa1 from Aa2.
At the same time, Moody's has assigned the Aa1 rating to the district's $16.7 million general obligation refunding bonds, Series 2014A and $23 million general obligation bonds, Series 2014B. The bonds are secured by the district's unlimited property tax pledge.
The proceeds of the 2014A bonds will refinance the district's general obligation bonds, Series 2005A and Series 2005B, for an estimated net present value savings of $1.3 million, or 7.4% of refunded principal with the bulk of savings taken upfront and with no extension to maturity. The proceeds from the 2014B bonds will be used to fund capital projects in accordance with the district's long-term capital plan and to pay costs associated with the issuance of the bonds.
The upgrade to Aa1 reflects the district's sizable tax base, which has benefitted from ongoing commercial investment and residential development, as well as proximity to the state capital; wealth levels that exceed state and national averages; a modest debt burden with rapid principal amortization; and ample financial reserves, which are supported by conservative budget management.
