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Moody's Assigns Aa2 to Cook County C.C.S.D 65 (Evanston), IL's Series 2016 GOLT Bonds.

New York: Issue: General Obligation Limited Tax School (Capital Appreciation) Bonds, Series 2016; Rating: Aa2; Sale Amount: $3,650,000; Expected Sale Date: 3/16/2016; Rating Description: General Obligation Limited Tax

Summary Rating Rationale

Moody's Investors Service has assigned a Aa2 rating to Cook County Community Consolidated School District 65 (Evanston), IL's $3.7 million General Obligation Limited Tax (GOLT) School Capital Appreciation Bonds, Series 2016. Concurrently, Moody's has affirmed the Aa2 rating on the district's outstanding GOLT debt. Post-sale, the district will have $80.0 million in GOLT debt.

The Aa2 rating reflects the district's large and affluent tax base; historically stable financial operations with satisfactory reserve levels and moderate debt burden. The rating also considers the availability of a dedicated property tax levy unlimited as to rate but limited by the amount of the district's Debt Service Extension Base (DSEB).

Rating Outlook

Outlooks are generally not assigned to local government credits with this amount of debt.

Factors that Could Lead to an Upgrade

Strengthening of available reserves and liquidity

Sustained growth of the tax base

Factors that Could Lead to a Downgrade

Declines in operating reserves and liquidity

Resumed tax base depreciation

Further leveraging of the district's DSEB

Pressure on operations driven by DSEB debt support due to unrealized growth assumptions

Legal Security

The district's outstanding GOLT debt, including the current issuance, is supported by a dedicated property tax levy, unlimited as to rate, but limited by the amount of the district's DSEB.

Use of Proceeds

Proceeds from the current issue will be used to fund a variety of capital improvements, including roof and plumbing repairs and boiler replacements.

Obligor Profile

Located 12 miles north of downtown Chicago in Cook County, the district serves the City of Evanston and a small portion of the Village of Skokie. As of 2015, district enrollment totaled 7,218. Over the last five years, district enrollment has increased by an annual average rate of 3.0%.

Methodology

The principal methodology used in this rating was US Local Government General Obligation Debt published in January 2014.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Apr 1, 2016
Words:344
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