MOODY'S ASSIGNS A1 UNDERLYING RATING TO DALLAS SCHOOL DISTRICT'S (PA) $19.3 MILLION GENERAL OBLIGATION BONDS SERIES A OF 2010 AND TO THE $6.4 MILLION GENERAL OBLIGATION BONDS, SERIES B OF 2010 (REFUNDING SERIES)

Posted on: June 8, 2010, 11:51 am

NEW YORK, Jun 8, 2010 -- Moody's Investors Service has assigned an A1 underlying and Aa3 with negative outlook enhanced rating to Dallas School District's (PA) $19.3 million General Obligation Bonds, Series A of 2010 and $6.4 million General Obligation Bonds, Series B of 2010. Series A bonds are secured by the district's general obligation limited tax pledge which is subject to Special Session Act 1 property tax limitations (Taxpayer Relief Act) that restricts school districts' ability to increase the property tax millage beyond an annual index without seeking specific exemptions or voter approval. While the Series B bonds are secured by the district's unlimited general obligation tax pledge, as it is exempt from Special Session Act 1 property tax limitations. The A1 rating reflects the district's satisfactory financial position and reserve levels, moderately sized tax base with slightly above average income levels, and a high but stable debt burden. The refunding Series B of 2010 bonds are currently refunding Series 2005 with an estimated net present value savings of 2% of refunded principal. The majority of the savings is taken during fiscal 2011 with no extension of maturity...

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