Moody's downgrades Trinity Area SD, PA's GO to A2; assigns negative outlook

Posted on: March 20, 2014, 3:58 pm

NEW YORK, March 20, 2014 --Moody's Investors Service has downgraded the Trinity Area School District's (PA) general obligation rating to A2 from A1, and assigned a negative outlook. Concurrently, Moody's has assigned an A2 underlying rating and an A1 enhanced rating with a negative outlook to $825,000 Taxable General Obligation Bonds, Series of 2014. Proceeds will be used to refund a portion of the district's Series of 2012 bonds upfront savings, but an overall net present value loss of $56,715, or -7.5% of refunded principal. The restructuring will extend the bonds maturity to 2022. These bonds are secured by the district's unlimited general obligation pledge, as the bonds are not 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...

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