Oxnard School Dist, CA's TRANs Rated 'SP-1+' by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/31/98-- Standard & Poor's today assigned its 'SP-1'-plus rating to Oxnard School District, Calif.'s tax and revenue anticipation notes Revenue Anticipation Note (RAN) A short-term municipal debt issue that will be repaid with anticipated revenues, such as sales taxes, from the project. dated Aug. 20, 1998 due Aug. 19, 1999. The notes are scheduled to sell Aug. 6, 1998. The rating reflects: -- The district's general fund pledge, -- A strong note structure that includes early set asides of pledges revenues, and -- Strong overall coverage of debt service from taxes and other available revenues. Proceeds will provide funds for fiscal 1999 general operations to cover the timing discrepancy DISCREPANCY. A difference between one thing and another, between one writing and another; a variance. (q.v.) 2. Discrepancies are material and immaterial. between cash receipts and disbursements. The notes are secured by property taxes and other legally available revenues attributable to fiscal 1999. Revenues are required to be segregated in a separate note repayment account sufficient to pay 60% of the note principal in March 1999 and the remaining 40% plus the interest in May 1999. Projected debt service coverage by net general fundcash balances attributable to fiscal 1999 is 2.29 times (x) in March and 3.27x in May. At fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. 1999, the projected general fund cash balance of $6.3 million would provide 1.86x coverage. Monies that could temporarily be borrowed from other funds to pay TRAN TRAN Transmit TRAN Transient TRAN Tax Revenue Anticipation Note TRAN Dow Transport Index TRAN Transport Layer debt service at maturity in the event of a debt service deficiency boost coverage at maturity to 2.67x. The district's operating funds and TRAN proceeds will be deposited into the Ventura County Treasury Portfolio, which has a triple-'Af' credit quality rating and a triple-'a' market risk rating by Standard & Poor's. These ratings suggest that the county's portfolio assets and counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. provide extremely strong protection against losses from credit defaults and exhibit extremely low sensitivity to changing market conditions. The Oxnard School District operates 14 elementary schools elementary school: see school. (grades K-8), three junior high schools (grades 7-8), one opportunity school, and one special education annex an·nex tr.v. an·nexed, an·nex·ing, an·nex·es 1. To append or attach, especially to a larger or more significant thing. 2. to residents in Oxnard and a portion of Port Hueneme Port Hueneme (wī'nē`mē), city (1990 pop. 20,319), Ventura co., S Calif., on the Pacific coast; founded 1870, inc. 1948. It has an artificial deep-sea harbor and is the site of a huge naval construction-battalion (Seabee) center. , Calif. Enrollment (14,425 students) has increased steadily since 1994, growing at an average of 2.9% each year. Operations have been good. The 1997 unreserved general fund balance ended with $5 million, or 7.2% of expenditures. Fiscal 1998 is projected to end with an unreserved general fund balance of about $5.1 million, or 6.5% of expenditures -- CreditWire.
CONTACT: Jonathan Chirunga, San Francisco (1) 415-765-5014
Jeffrey Thiemann, San Francisco (1) 415-765-5006
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