The AA3 rating reflects Moody’s assessment of the additional security provided by the Kentucky School District Enhancement Program (KSDE). The rating is considered high quality and very low credit risk.
The negative outlook on the rating reflects the negative outlook on the commonwealth’s long term rating.
“The negative outlook means there is a risk of a downgrade (to their credit rating) over the next 12-24 months because of some downward fiscal pressure,” said David Jacobson, AVP of Communications Strategist with Moody’s Investors Service. “AA3 is our fourth highest rating. AA-rated bonds are judged to be of high quality and are subject to very low credit risk.”
Moody’s rates on a scale of twenty one possible ratings, beginning with an AAA and ending with a C rating.
The Webster County School Board approved the issuing of this bond at their September meeting in Sebree in order to fund their Trane Performance Contract.
“You’ve approved an energy conservation contract with Trane,” Glenn Brashear of the School District Finance Company told the board at that meeting. “This project will necessitate a bond issue of $3,025,000. You have $4 million bonding potential, and we will use a little over $3 million for this project.”
The contract includes many energy and maintenance saving technologies and techniques and will guarantee an annual savings of $108,023. The guaranteed savings program will allow Webster County Schools to defer a large amount of the capital monies by generating savings from the operating budget and using those savings to pay for the agreed upon improvements.
J-E News Editor
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