MOODY'S ASSIGNS Aa2 RATING TO PLYMOUTH INTERMEDIATE SCHOOL DISTRICT NO. 287 (MN) $7.5 MILLION REFUNDING COPS, SERIES 2010C

Posted on: June 9, 2010, 10:12 am

NEW YORK, Jun 9, 2010 -- Moody's Investors Service has assigned a Aa2 rating to the Plymouth Intermediate School District No. 287 (MN) $7.5 million Refunding Certificates of Participation, Series 2010C. Concurrently, Moody's has affirmed the Aa2 rating on the district's outstanding certificates of participation. Plymouth ISD 287 has $20.8 million of outstanding certificates of participation, including the current issue. Proceeds of the Series 2010C certificates will current refund outstanding maturities of the district's Lease Loan, Series 2006, the proceeds of which financed the purchase of land for a new school building. The current refunding is being issued to achieve estimated interest savings. Debt service on the Series 2010C certificates is secured by a pledge of lease payments to be received by the trustee (Wells Fargo Bank, NA, senior unsecured rated Aa2/stable outlook) from ISD 287, subject to annual appropriation by ISD 287. The primary source of the lease payments will be capital levy revenues from the member school districts of ISD 287, as well as tuition payments from non-member school districts that use ISD 287 facilities and services. Assignment and affirmation of the Aa2 rating reflects the essentiality of the land that was purchased with proceeds of the issue to be refunded; the annual risk of non-appropriation by ISD 287; the availability of a dedicated, though limited, capital levy for member school districts to use for lease payments; the limited revenue raising ability of the obligor; the district's role as a provider of special education and other essential services for independent school districts; and the general obligation credit characteristics of the member districts and several non-member districts...

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