Moody's Investors Service said it downgraded the rating on the Rickenbacker Port Authority, Ohio's capital funding revenue bonds, Series 2002A (OASBO Expanded Asset Pooled Financing Program) to A2.
The bonds are special and limited obligations of the issuer payable solely from assets of the Trust Estate. The bonds were issued for the purpose of providing individual loans to school districts looking to finance essential capital projects.
The bonds are secured by payments to be received pursuant to individual loan or lease agreements with each of the participating districts. Other assets of the trustee include a fixed debt service reserve fund (DSRF) of $10.2 million.
The A2 rating reflects average underlying credit quality of the pool participants; the decreasing size and diversity of the pool composition; strong legal structure and covenants; cash funded fixed debt service reserve fund; weaker ratings of swap counterparties and guaranteed investment contract (GIC) providers; and limited ongoing governance and oversight of the pool.
