Moody's Investors Service said it has assigned a Aa1 rating to the Radnor Township School District, Pa.'s $17.2 million Series 2014 general obligation bonds and upgraded the district's general obligation rating to Aa1 from Aa2.
The upgrade affects approximately $97 million of outstanding debt.
The current issue is secured by the district's general obligation unlimited tax pledge, as it is not subject to limitations under Act 1. Proceeds will be used to refund the district's Series 2004 and Series 2006 bonds for estimated net present value savings of 4.8% of refunded principal.
The upgrade to Aa1 reflects the sustained strengthening of the district's financial position over the past five years, resulting in a healthy financial position and strong cash levels.
The rating also incorporates the district's moderately sized tax base with above average socioeconomic characteristics, the stabilizing presence of Villanova University (rated A1 stable), and average debt levels.
