Bangkok--31 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' long-term rating to Dayton School District No. 8, Yamhill County, Ore.'s series 2009A general obligation (GO) bonds and 2009B federally taxable (Build America Bonds -- Direct Payment) GO bonds. In addition, Standard & Poor's assigned its 'A+' school issuer credit rating (ICR) to both series. 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. The GO bonds' underlying security, which is the basis for the school ICR, consists of a pledge of the district's full faith credit and resources, and a covenant to levy ad valorem property taxes without limitation as to rate or amount.
"The district's ICR is based on the district's good financial policies and practices, including an informal policy to maintain a general fund balance of at least 10% of general fund expenditures, and history of maintaining strong to very strong available balances," said Standard & Poor's credit analyst Bryan Moore.
Proceeds of the bonds will fund a new grade school building, a new high school physical education facility, and an addition to the junior high school building. The district has indicated that it intends to designate the series 2009B bonds as Build America Bonds as authorized by the American Recovery and Reinvestment Act (ARRA) of 2009. Under ARRA, the district expects that the bonds will qualify for a cash subsidy from the U.S. Treasury equivalent to 35% of the amount of each interest payment.
Encompassing approximately 60 square miles, including the City of Dayton and unincorporated areas of Yamhill County, the Dayton School District provides K-12 educational services to roughly 5,000 residents. Fiscal 2009 weighted average daily membership totaled a preliminary 1,205.
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:
Bryan A Moore, San Francisco (1) 415-371-5077
Le T Quach, San Francisco (1) 415- 371-5013