Mission Consolidated I.S.D., TX -- Moody's assigns A1 underlying rating and stable outlook to Mission Consolidated Independent School District's (TX) $2.97 million Maintenance Tax Qualified School...
New York, August 29, 2012 --
Issue: Maintenance Tax Qualified School Construction Notes, Taxable Series 2012 (Direct Subsidy); Rating: A1; Sale Amount: $2,978,000; Expected Sale Date: 09-15-2012; Rating Description: General Obligation Limited Tax
Moody's Investors Service has assigned an A1 underlying rating and stable outlook to Mission Consolidated Independent School District's (TX) $2.97 million Maintenance Tax Qualified School Construction Notes, Taxable Series 2012. Concurrently Moody's affirms A1 rating and assigns stable outlook to roughly $148.9 million in unlimited tax debt outstanding. Proceeds from the sale with fund upgrades various upgrades to several elementary schools located within the district.
SUMMARY RATINGS RATIONALE
The Notes are payable as to principal and interest from the proceeds of a continuing, direct annual ad valorem tax levied for maintenance purposes by the district within the limitations of the district's maintenance tax authority, against all taxable property located within the district. The rating reflects the district's large tax base, solid financial operations with healthy and improving reserve levels, and an above average debt burden with no plans for future borrowing. The lack of rating distinction between the district's limited tax debt and unlimited tax debt is reflective of the modest amount of limited tax notes outstanding post-sale and the district current healthy financial operations and reserve levels. The stable outlook reflects the district's solid financial operations which are demonstrated by a recent history of operating surpluses and maintenance of healthy reserves. The stable outlook also reflects a return to positive, albeit marginal, taxable value growth.
* Large predominately residential tax base
* Stable financial operations with healthy reserves
* Weak socioeconomic profile
* Above average debt burden
The stable outlook reflects the district's solid financial operations which are demonstrated by a recent history of operating surpluses and maintenance of healthy reserves. The outlook also reflects a return to positive, albeit marginal, taxable value growth.
WHAT COULD MAKE THE RATING GO UP
* Significant growth in assessed valuation coupled with strengthening socioeconomic indices
* Maintenance of ample reserves
WHAT COULD MAKE THE RATING GO DOWN
* Contraction of assessed valuation
* Significant narrowing of district's reserve position
The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
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