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MIAMI-DADE COUNTY PUBLIC SCHOOLS BONDS RECEIVE FAVORABLE RATINGS Two international bond rating services have given Miami-Dade County Public Schools’ (M-DCPS) new bond issues favorable ratings. The bonds were approved by voters last November by a nearly 70 percent majority and will be used for school facility improvements, new construction and technology upgrades. Moody’s Investor Services and Standard & Poor’s (S&P) rating agencies assigned “Aa3” and “A+” ratings, to the District’s General Obligation (GO) Bond 2013 Series, which will provide approximately $200 million in proceeds to the school district by the end of July 2013. The district also was able to issue a second series of bonds that will provide approximately $100 million in additional funds by the end of February 2014. This series was rated “(P)Aa3” by Moody’s and “A+” by S&P. All long-term ratings have a stable outlook. Moody’s stable outlook reflects a strong management team, the District’s notable financial improvement, the future ability to fund capital improvements with the $1.2 billion general obligation bond, and a slowly recovering economy. S&P noted that the District’s finances have gradually improved since fiscal 2008, while the weakened tax base has shown some recent indications of recovery. S&P also considered that the District’s overall debt levels remain low. S&P believes the District still faces moderate near-term budgetary pressures due to weakened tax base and constrained state funding. Should the District keep adequate reserves and stabilize performance during this upcoming period of new GO issuances, S&P could raise the rating. Moody’s has assigned MIG 1 (the highest rating for short-term notes) to the upcoming $250 million Tax Anticipation Note (TAN) sale. The TAN is being issued for cash-flow purposes to provide liquidity until sufficient property tax receipts are received, beginning in November 2013. Moody noted the strength of the district includes favorable financial conditions, conservative and strong district management, and a stabilizing economy. # # # 13-JS/150 |
