MOODY'S ASSIGNS A1 RATING THE CHICAGO BOARD OF EDUCATION'S $48,910,000 GO REFUNDING BONDS, SERIES 2010A AND $157,055,000 GO REFUNDING BONDS, SERIES 2010B

Posted on: February 8, 2010, 4:00 pm

NEW YORK, Feb 8, 2010 -- Moody's Investors Service has assigned an A1 underlying rating with stable outlook to the Chicago Board of Education's $48.91 million Unlimited Tax General Obligation Bonds (Dedicated Revenues) Series 2010A and $157.055 million Unlimited Tax General Obligation Bonds (Dedicated Revenues) Series 2010B. Concurrently, Moody's has affirmed the A1 rating with stable outlook on the Chicago Board of Education's outstanding $4.9 billion of outstanding GO debt, including the current offering. Additionally, the A1 rating applies to $359.2 million of outstanding GO Chicago Public Building Commission bonds. The Chicago Board of Education serves as the primary debt issuing arm of Chicago Public Schools. Proceeds of the current offering will refund the Board's outstanding $48.91 million Series 2004C-2 and $157.055 million Series 2005D-2 bonds. The A1 rating reflects a substantial and diverse tax base, coterminous with the City of Chicago (general obligation rated Aa3) which experienced strong valuation growth over the past decade; satisfactory finances, expected to continue given management's track record of meeting financial benchmarks along with the stability brought from settled teacher contracts through 2012, and a slightly above-average debt burden, compounded by a slow amortization structure and substantial additional capital needs...

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