NEW YORK - Moody's Investors Service said it has upgraded Newark City School District, Ohio's general obligations unlimited tax rating to Aa3 from A1 affecting $64 million of post-sale GOULT debt.
Concurrently, Moody's assigned the Aa2 enhanced (OSDCE) rating with a stable outlook and Aa3 underlying rating to the district's $8.49 million general obligation (unlimited tax) school improvement refunding bonds, Series 2012.
The $8.49 million GO school improvement refunding bonds, Series are secured by the district's general obligation unlimited tax pledge, with proceeds used to refinance bonds issued in 2005. The enhanced rating of Aa2 is notched from the state's Aa1 general obligation rating and is also assigned a stable outlook.
The enhanced Aa2 rating is based on the programmatic rating and the district's satisfactory coverage of interceptable aid to debt service of approximately 3.4 times maximum annual debt service on the current offering and compliance with program requirements for timing of debt service payments. The underlying rating of Aa3 is based on the district's moderately sized tax base with additional growth opportunities; moderating debt profile; and sound financial position.