LOS ANGELES - Washington's King County School District No. 411 is expected to sell $55 million of bonds later this month to finance various school projects.
The district, southeast of Seattle, serves a population of just under 103,000 in Issaquah and portions of Newcastle, Sammamish, Bellevue, and Renton.
The $55 million of unlimited tax general obligations bonds will be secured by the district's full faith, credit and unlimited property tax pledge.
The bonds carry an underlying rating of Aaa from Moody's Investors Service, as well as a Aa1 enhancement rating of the Washington State School Bond Guarantee Program, which carries a stable outlook and reflects the state's rating.
"The district's underlying Aaa rating reflects the district's sizable tax base located in the Puget Sound region, very strong wealth measures, stable financial operations characterized by reserves that are strong for a Washington school district, and management debt and pension liabilities," Moody's analysts said in the credit report.
The Aa1 enhancement rating is based on the assumption that the bonds will qualify for, and be backed by, the Washington State School Bond Program, Moody's said.
Under the program, the state pledges its full faith, credit and taxing power to guarantee debt service when due on qualified school districts' voter-approved GO bonds.
Moody's said the school's reserve levels, which are typical of Washington school districts but lag the median nationally, are a credit challenge.
"The stable outlook reflects Moody's expectation that the district's finances will remain structurally balanced and that its debt and pension liabilities will remain manageable," analysts said.
The bonds are scheduled to price during the week of May 28.
