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MOODY'S ISSUES SPECIAL REPORT ON 40 MINNESOTA SCHOOL DISTRICTS

 MOODY'S ISSUES SPECIAL REPORT ON 40 MINNESOTA SCHOOL DISTRICTS
 NEW YORK, April 29 /PRNewswire/ -- Effective today, Moody's Investors Service announced that it has just completed a special report on the 40 school districts in the Minneapolis-St. Paul metropolitan area that have outstanding general obligation bond ratings. The report resulted in seven upgrades and two downgrades of Moody's ratings.
 The seven rating downgrades are largely attributable to financial deterioration, which for certain districts has been dramatic. A growing number of districts are spending in excess of their annual revenue budgets, resulting in a rapid depletion of reserves. Failure to request or achieve voter approval of additional levy support for operations also contributes to budget problems. In several instances, cash position is so weak that the districts have had to resort to short-term borrowing to repay outstanding short-term notes.
 The rating upgrades to "Aa" from "A1" for the debt of the Bloomington and Orono school districts are directly attributable to the districts' substantial resources and strong management.
 Despite the relatively large number of downgrades, the overall distribution of general obligation bond ratings for school districts in the Minneapolis-St. Paul metropolitan area is much better than the state-wide average of rated school districts. Over 58 percent of the Twin Cities' school districts have ratings of "A" or above, compared to 40 percent statewide; approximately 11 percent have "Aa" ratings compared to 4 percent statewide. The more favorable distribution is due primarily to the strength of the Twin Cities economy.
 The report, which will be available later this week, includes a regional overview, a comparative table of selected key statistics, and individual credit comments for each of the 40 highlighted school districts. Listed below are the school districts included in the report and the corresponding ratings for their general obligation debt.
 ISSUER RATING
 Anoka-Hennepin Independent School District
 No. 11 Baa
 Bloomington Independent School District
 No. 271 Aa (revised from A1)
 Brooklyn Center Independent School District
 No. 286 A
 Burnsville Independent School Dist. No. 191 A
 Centennial Independent School Dist. No. 12 Aaa (see NOTE 1)
 Chaska Independent School District No. 112 Baa
 Eden Prairie Ind. School Dist. No. 272 A1
 Farmington Independent School Dist. No. 192 Baa1
 Forest Lake Independent School Dist. No. 831 A
 Hastings Independent School District No. 200 Baa
 Hopkins Independent School District No. 270 A1
 Inver Grove Heights Independent School
 District No. 199 A
 Lakeville Independent School Dist. No. 194 A
 Mahtomedi Independent School Dist. No. 832 Baa (revised from
 Baa1)
 Minneapolis Special School District No. 1 A1
 Minnetonka Independent School Dist. No. 276 Aa
 Mounds View Independent School Dist. No. 621 A (revised from A1)
 New Prague Independent School Dist. No. 721 Aaa (NOTE 1)
 North St. Paul Maplewood Independent School
 District No. 622 Baa (revised from A1)
 Norwood-Young America Independent School
 District No. 108 Baa
 Orono Independent School District No. 278 Aa (revised from A1)
 Osseo Independent School District No. 279 A1
 Prior Lake Independent School Dist. No. 719 Baa
 Richfield Independent School Dist. No. 280 A1
 Robbinsdale Independent School Dist. No. 281 A
 Rosemount Independent School Dist. No. 196 A
 Roseville Independent School Dist. No. 623 A
 Shakopee Independent School Dist. No. 720 A
 South St. Paul Special School Dist. No. 6 A
 South Washington County Independent School
 District No. 833 A
 Spring Lake Park Independent School
 District No. 16 Baa
 St. Francis Independent School Dist. No. 15 Baa
 St. Louis Park Independent School
 District No. 283 Aa
 St. Paul Independent School District No. 625 Aa
 Stillwater Independent School Dist. No. 834 A
 Waconia Independent School District No. 110 Baa (revised from
 Baa1)
 Watertown-Mayer Independent School
 District No. 111 Baa
 Wayzata Independent School District No. 284 Ba (revised from A)
 West St. Paul Independent School District
 No. 197 Baa (revised from A1)
 White Bear Lake Independent School District
 No. 624 Baa (revised from A)
 NOTE 1 -- Debt insured by MBIA.
 -0- 4/29/92
 /CONTACT: Ann Lowenthal, 212-553-0915, or Dan Aschenbach, vice president, 212-553-0880, both of Moody's/ CO: ST: Minnesota IN: SU: RTG


GK-LR -- NY066 -- 4519 04/29/92 15:33 EDT
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Date:Apr 29, 1992
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