MOODY'S DOWNGRADES GREATER LAWRENCE REGIONAL VOCATIONAL TECHNICAL HIGH SCHOOL DISTRICT'S (MA) G.O. RATING TO Baa3 FROM A3

Posted on: December 17, 2009, 2:08 pm

NEW YORK, Dec 17, 2009 -- Moody's Investors Service has downgraded Greater Lawrence Regional Vocational Technical High School District (MA) to Baa3 from A3 affecting $34.4 million in outstanding general obligation debt. All of the district's debt also carries the Massachusetts Qualified Bond Program's enhanced rating of Aa3 with a stable outlook. The downgrade largely reflects the weakened long-term credit characteristics of several member municipalities, particularly the City of Lawrence (GO rated Baa3), the largest member of the district. The bonds are general obligations of the district and are further secured by the general obligation limited tax pledge of the members Cities of Lawrence and Methuen (GO rated A3) and the Towns of North Andover (GO rated A1) and Andover (GO rated Aa1). The district's Baa3 rating reflects the relative credit quality of the members, the district's trend of stable financial operations with sizable reliance on state aid and a manageable debt position (0.3% debt burden). The school is located in the Town of Andover, approximately 22 miles north of Boston (rated Aa1/stable outlook). The district's four member municipalities have averaged a healthy 8.6% annual rate of equalized valuation growth since 2004, reflective of strong market appreciation in the region, although future growth is expected to decline in the near term due to the current economic environment...

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