Moody's Investors Service said it has assigned Aa1 to San Dieguito Union High School District, Calif.'s $2.3 million 2015 general obligation bonds (election of 2012), Series B-1 (taxable) and $114.7 million 2015 general obligation bonds (election of 2012), Series B-2 (tax-exempt), and upgraded to Aa1 from Aa2 the ratings on $149.8 million of existing, parity GO bonds.
The upgrade to Aa1 reflects the district's sizeable, stable and affluent tax base; low debt levels with manageable additional capital needs; and favorable operating profile given a general fund budget unencumbered by deferred costs or needed restorations, basic aid designation with expected level enrollment over the intermediate term, and a status quo expenditure budget that is sustainable and aligned with ongoing revenues, all of which afford a healthy degree of financial flexibility. The district's management team has a track record of conservative budgeting, disciplined spending and long-term planning.
The Aa1 GO rating also reflects the strength of the voter-approved, unlimited property tax pledge securing the bonds, and the well-established levy and collection history for the debt service payment. The county, rather than the district, levies, collects, and disburses the district's property taxes, including the portion constitutionally restricted for debt service on GO bonds, which it transfers directly to the paying agent.
