Moody's Investors Service has upgraded Red Wing Independent School District 256, Minn.'s underlying GO rating to A2 from A3.
The A2 applies to $13.4 million of post-sale general obligation debt, secured by the district's general obligation unlimited tax pledge. Concurrently, Moody's assigns an A2 underlying rating and Aa2 enhanced (MSDE) rating with stable outlook to $1.66 million general obligation alternative and capital facilities bonds, Series 2014A. Proceeds of the bonds will finance repairs to the district's athletic facilities and upgrades to the indoor ice arena's air quality.
The A2 underlying rating reflects the district's continued financial improvements in fund balances and cash trends; moderate tax base and above average income indices; stable operating history; and low debt burden .
The enhanced Aa2 rating and stable outlook is due to the additional security provided by the state of Minnesota's School District Enhancement Program (MSDE).
