Bangkok--10 Jun--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' long-term rating, with a stable outlook, and its 'AA-' school issuer credit rating (ICR) to Snohomish County School District No. 15 (Edmonds), Wash.'s unlimited-tax general obligation bonds series 2009. Additionally, Standard & Poor's affirmed its 'AA+' underlying rating (SPUR) and its 'AA-' school ICR on the district's series 2006A and 2003A-B bonds. Finally, Standard & Poor's affirmed its 'AA-' SPUR on the district's series 1999 bonds.
The 'AA+' long-term rating and SPUR on the series 2006A and 2003A-B bonds, respectively, reflects the state's school bond guarantee. The program rating and outlook will be adjusted if a state rating change or outlook revision occurs.
The 'AA-' SPUR on the series 1999 bonds and 'AA-' school ICR on the series 2003A-B and 2006 bonds reflects a large and diverse economic base that is fully integrated to the broad and diverse Puget Sound economy; high wealth and income indicators of district residents; and moderate overall debt burden, with rapid amortization.
These strengths are offset by the district's reserve drawdowns from 2005 to 2008, ending 2008 with what we consider to be an adequate 2.7% of expenditures.
The bonds are general obligations of the district, and the full faith, credit, and resources of the district have been pledged irrevocably for the punctual payment of the principal of and the interest on the bonds. The bonds are secured by ad valorem taxes to be levied against all taxable property within the district without limitation as to rate or amount.
The series 2009 bonds are being issued to finance the costs of capital construction and capital improvements to the district's educational facilities.
"Although the district has been drawing down its fund balances for the last four years, we expect the district will make the necessary cuts to expenditures to increase fund balances," said Standard & Poor's credit analyst Jennifer Hansen.
The district provides K-12 education to approximately 152,900 residents throughout southern Snohomish County.
RELATED RESEARCH
-- USPF Criteria: "GO Debt," Oct. 12, 2006
-- USPF Criteria: "Financial Management Assessment," June 27, 2006
-- USPF Criteria: "State Credit Enhancement Programs," Nov. 13, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Jennifer Hansen, San Francisco 415-371-5035
Ian Carroll, San Francisco (1) 415-371-5060