Rating Action: Moody's assigns MIG 1 to Ravena-Coeymans-Selkirk Central School District, NY BANs
Global Credit Research - 10 Aug 2020
New York, August 10, 2020 -- Moody's Investors Service has assigned a MIG 1 rating to Ravena-Coyemans-Selkirk Central School District, New York's $18.1 million Bond Anticipation Notes, 2020.
RATINGS RATIONALE
The MIG 1 rating reflects the long term credit quality of the anticipated take-out financing supported by the New York State Section 99-b Intercept Program which is currently rated Aa3. The district would likely qualify for the enhancement rating at the time of take-out given strong coverage of debt service of state aid revenues, which in 2019 was 4.8 times. In addition, the rating reflects a history of strong market access for notes and bonds secured by the program.
We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. The coronavirus crisis is not a key driver for this rating action. We do not see any material immediate credit risks for the district. However, the situation surrounding coronavirus is rapidly evolving and the longer term impact will depend on both the severity and duration of the crisis. If our view of the credit quality of district changes, we will update the rating and/or outlook at that time
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
- Downgrade of the 99-b intercept program rating
- Very sharp decline in state aid coverage of debt service
- Deterioration of the issuer's credit quality
LEGAL SECURITY
The notes are secured by the district's unlimited general obligation ad valorem tax pledge. The notes are further secured by the section 99-b intercept program.
USE OF PROCEEDS
The proceeds of the notes will partially renew bond anticipation notes maturing on August 14, 2020 while providing $646,83 of new money.
PROFILE
The district is located in upstate New York (Aa1 negative) in the geographical region known as the Capital region, approximately 10 miles from the City of Albany. The district has a land area of approximately 125 square miles and a population currently estimated at 14,250. The district provides public school education for grades K-12. Enrollment is 1,799 and has remained declining over the past five years.
METHODOLOGY
The principal methodology used in this rating was Short-term Debt of US States, Municipalities and Nonprofits Methodology published in July 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1210749. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
Robert Weber Lead Analyst Regional PFG Northeast Moody's Investors Service, Inc. 7 World Trade Center 250 Greenwich Street New York 10007 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Nicholas Lehman Additional Contact Regional PFG Northeast JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653
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