Bangkok--17 Mar--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' long-term rating to Umatilla County School District #8R (Hermiston), Ore.'s 2009A and 2009B general obligation (GO) bonds. In addition Standard & Poor's assigned its 'AA-' school issuer credit rating (ICR) to both series. Finally, Standard & Poor's affirmed its 'AA' long-term rating and underlying rating (SPUR) on the district's outstanding GO debt. The outlook is stable.
"The 'AA' rating reflects the district's eligibility for, and participation in, the Oregon School Bond Guaranty Program and is equivalent to the state's GO rating," said Standard & Poor's credit analyst Chris Morgan. "The 'AA' school ICR reflects the district's steady student population growth, good financial policies, and history of maintaining strong available balances."
Proceeds of the bonds will fund a portion of a capital plan that includes the construction of two new elementary schools, construction of a new middle school, and upgrades to existing facilities.
The largest in Eastern Oregon by enrollment, the district serves a growing population of 24,509 located 185 miles east of Portland and centered on the City of Hermiston. Enrollment stands at 4,708 for fiscal 2009 and has increased in nine of the past 10 years; a 2007 third-party demographic study projects that enrollment will reach 5,776 in fiscal 2017 under a medium growth scenario. Economic activity is tied to the agricultural industry, with Hermiston serving as a processing, warehousing, and medical service center for a surrounding farming and ranching area that produces wheat, cattle, potatoes, and onions, among other goods.
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Chris Morgan, San Francisco (1) 415-371-5032
Lisa Schroeer, San Francisco (1) 415-371-5006
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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