MOODY'S ASSIGNS Aa1 TO DERRY TOWNSHIP SCHOOL DISTRICT'S (PA) $23.4 MILLION G.O. BONDS, SERIES OF 2010 AND 2010A

Posted on: May 7, 2010, 3:24 pm

NEW YORK, May 7, 2010 -- Moody's Investors Service has assigned a Aa1 rating to the Derry Township School District's $10 million General Obligation Bonds (Limited Tax Obligations), Series of 2010 and $15.2 million General Obligation Bonds, Series A of 2010. The Aa1 rating applies to $55.5 million of outstanding general obligation debt. The Series of 2010 bonds are secured by the district's general obligation pledge, limited by Special Session Act 1 (Taxpayer Relief Act) which restricts school districts' ability to increase property tax millage beyond an annual index without seeking specific exemptions or voter approval. The Series A of 2010 bonds are secured by the district's general obligation unlimited tax pledge, as they are exempt from Special Session Act 1 property tax limitations. The Aa1 rating reflects expected maintenance of historically sound financial performance characterized by ample reserves, the district's wealthy resident profile and manageable debt position. Proceeds from the Series of 2010 bonds will be used to finance capital improvements to existing buildings. The Series A of 2010 bonds will currently refund the Series 2004A and Series 2005 bonds for an expected net present value savings of approximately 3.96% of refunded principal with the majority of the savings taken during the first four years. The new debt service schedule does not extend the original maturity...

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