MOODY'S AFFIRMS CAREER AND TECHNOLOGY EDUCATION CENTERS OF LICKING COUNTY (OH) G.O. RATING OF Aa3; OUTLOOK CHANGED TO NEGATIVE

Posted on: December 29, 2009, 12:42 pm

NEW YORK, Dec 29, 2009 -- Moody's Investors Service has affirmed the outstanding Aa3 rating and assigned a negative outlook to the Career and Technology Education Centers of Licking County's (OH), (formerly known as Licking County Joint Vocational School District (OH)), $30.0 million in outstanding general obligation unlimited tax debt. The affirmation reflects the sizeable, stable tax base's favorable location to the strong Columbus (G.O. rated Aaa/Stable) economy. The majority of the heavily residential community (70% of assessed values) commutes to the City of Columbus, and is expected to benefit heavily from a major four-lane freeway being opened between Newark (G.O. rated A2) and Columbus. This major construction project is expected to be completed in the spring of 2010 and significantly reduce the commute for residents, making the district a more attractive location. Property along the highway is rapidly being purchased by investors, and large housing developments are underway. Moody's believes these developments will result in strong growth in the district over the long-term. From fiscal years 2002 to 2007, the district annual full value growth averaged 7.2%, well above the state median of 3.0%. Property tax revenue has flat-lined and state aid increases are minimal (0.75% in FY10). These represent the district's two largest revenue sources...

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