MOODY'S ASSIGNS Aa2 RATING TO ROCKWALL COUNTY'S $9.55 MILLION LIMITED TAX REFUNDING BONDS, SERIES 2010 AND $2.46 MILLION UNLIMITED TAX ROAD BONDS, SERIES 2010

Posted on: May 10, 2010, 5:00 pm

NEW YORK, May 10, 2010 -- Moody's Investors Service has assigned a Aa2 rating to Rockwall County's Limited Tax Refunding Bonds, Series 2010 and Unlimited Tax Road Bonds, Series 2010. Concurrently, Moody's has affirmed the Aa2 rating on the county's $50.16 million outstanding limited tax debt, net of the current refunding, and $10.52 million in outstanding unlimited tax debt. The refunding bonds are secured by a continuing direct annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the county. The road bonds are secured by an ad valorem tax levied, without limit as to rate or amount, on all taxable property within the county. There is no distinction in the ratings between the limited tax and the unlimited tax pledge given the ample taxing margin that exists between the county's current tax rate and the county's legal taxing authority. The refunding bonds will redeem various maturities of the series 1998 and 2001 tax bonds and will redeem the final maturity of the series 2008 tax notes. Proceeds from the road bonds will be used to finance various road projects throughout the county. The Aa2 rating reflects the county's sizeable tax base with strong wealth levels and a solid general fund reserve driven by annual surpluses. The rating also takes into consideration a low direct debt burden and a much higher overall debt burden due primarily to the overlapping debt of the fast growing school district of Rockwall ISD...

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