MOODY'S REVISES RATING ON DENVER PUBLIC SCHOOL DISTRICT, COLORADO GENERAL OBLIGATION BONDS TO 'A1' FROM 'Aa'
MOODY'S REVISES RATING ON DENVER PUBLIC SCHOOL DISTRICT, COLORADO GENERAL OBLIGATION BONDS TO 'A1' FROM 'Aa' NEW YORK, March 2 /PRNewswire/ -- Effective Friday, Feb. 28, Moody's downgraded Denver School District No. 1's $64.4 million outstanding general obligation bonds to "A1" from "Aa." The rating on the district's outstanding general obligation bond collateralized certificates of participation issued through the Colorado Association of School's Board's Lease Purchase Finance Program is also revised to "A1" from "Aa," affecting the $47.9 million outstanding series 1991B COPs and the upcoming sale of $44.5 million series 1992 COPs. In revising the ratings, Moody's said, "The recent trend of budgetary imbalance, arising largely as a result of reduced state equalization funding and higher-than-budgeted salary expenditures, has resulted in a drawdown in general fund balance and reduced financial flexibility despite ongoing expenditure containment efforts. Given the likelihood of further cutbacks in equalization aid due to the state's underfunding of the school finance formula, strained financial operations are likely to persist and the district will need to implement further cost cutting measures to restore budgetary balance. While several additional expenditure reduction proposals are currently being considered, current financial uncertainties combined with the district's weakened financial position detract from credit quality, and result in the rating revision. The district's debt profile remains generally positive; although per capita debt is somewhat above average, the district's substantial property tax base moderates debt burden. The Denver metropolitan area economy continues to exhibit modest recovery after the energy-sector induced recession of the mid-1980s, although significant scheduled reductions in defense industry employment throughout the area could hamper continued economic growth." -0- 3/2/92 /CONTACT: Adam Whiteman, vice president/manager-Rocky Mountain Regional Ratings, 212-553-7809, or Ditmar Kopf, assistant vice president-Rocky Mountain Regional Ratings, 212-553-4837, both of Moody's/ CO: Denver Public School District ST: Colorado IN: SU: RTG
JT-KW -- NY76 -- 4133 03/02/92 16:12 EST
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|Date:||Mar 2, 1992|
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