Bangkok--24 Jun--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'SP-1+' short-term rating to San Diego Unified School District, Calif.'s $235 million 2010-2011 tax and revenue anticipation notes (TRANs), series A.
"The rating reflects our view of the district's strong underlying general credit characteristics, structural provisions that include early set-asides of pledged revenues in a segregated note repayment account, and district projections that show adequate and strong coverage of debt service at each set-aside date and an adequate 1.11x coverage at final maturity," said Standard & Poor's credit analyst Bea Chiem.
The notes are secured by taxes, income, revenue, cash receipts, and other money received by the district in fiscal 2011. We understand that note proceeds will fund seasonal cash deficits during fiscal 2011, and that the notes will mature on June 30, 2011. The district covenants to set aside 40% of note principal (no interest) in January 2011 from unrestricted revenues that it receives in the period from Dec. 15, 2010, to Jan. 14, 2011, and remaining 60% of principal plus interest in April 2011 from unrestricted revenues from April 1 to 29, 2011.
The district will invest note proceeds with the San Diego County Investment Pool, which is consistent with Standard & Poor's guidelines for municipal investment funds.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Short-Term Debt, June 15, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Bea Chiem, San Francisco (1) 415-371-5070
Paul Dyson, San Francisco (1) 415-371-5079
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]
Standard & Poor's,