MOODY'S ASSIGNS MIG 1 RATING TO MIAMI-DADE COUNTY SCHOOL DISTRICT'S (FL) TAX ANTICIPATION NOTES, SERIES 2010

Posted on: June 28, 2010, 11:48 am

NEW YORK, Jun 28, 2010 -- Moody's Investors Service has assigned a MIG 1 rating to Miami-Dade County School District's (FL) issuance of $250 million Tax Anticipation Notes, Series 2010. The notes are secured by fiscal 2010-2011 operating tax revenues and are also payable from (but not secured by) any available non-ad valorem revenues deposited in the Sinking Fund. The highest grade short-term rating is based on the set-aside 30 days prior to the January 17, 2011 maturity date of the notes and adequate cash margins at time of note repayment (18.6% of total estimated receipts), despite a modest year-ending cash balance (3.5% of total estimated receipts). Also considered is the sizable amount of capital funds which could be used as alternate liquidity if needed. The notes are being issued for cash flow purposes in the fiscal year that begins on July 1, 2010, until property tax receipts are received beginning in November 2009. The district has been a regular issuer of TANs, and amounts have fluctuated annually from a low of $65 million in fiscal 2000 to a high of $220 million issued in fiscal 2007. The current issue is $100 million more than last year, due primarily to the state discontinuing the practice of providing additional state FEFP funds (15%) in the first three months of the fiscal year which equated to about $78 million for the district at the beginning of fiscal 2010. This issuance represents a moderate 20.5% of expected property tax receipts and 9.6% of total anticipated General Fund receipts (exclusive of note proceeds). Notes are dated July 15, 2010 (anticipated date of delivery) and due January 17, 2011...

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