Rating Action: 

Moody's assigns Aa3 to Miamisburg City School District, OH's GO bonds

22 Feb 2022

New York, February 22, 2022 -- Moody's Investors Service has assigned a Aa3 rating to Miamisburg City School District, OH's $27 million Refunding Bonds, Series 2022 (Federally Taxable) (General Obligation - Unlimited Tax). Moody's maintains the district's Aa3 issuer rating and a Aa3 rating on the district's outstanding General Obligation Unlimited Tax (GOULT) debt and a A1 lease rating on the district's Certificates of Participation (COPs). The issuer rating reflects the district's ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. Post-sale, the district will have $61 million in GOULT debt and $3 million in COPs outstanding.

RATINGS RATIONALE

The Aa3 issuer rating reflects the district's healthy reserves that will remain solid given well-managed financial operations. Additionally factored into the rating is the district's stable local economy in the Dayton (Aa2 stable) area with solid median household income and moderate full value per capita. Enrollment had been modestly declining prior to fiscal 2021, and the impact of coronavirus has worsened this trend. However, district officials expect enrollment to stabilize over the next few fiscal years with the addition of full day kindergarten. Long-term leverage is elevated with exposure to an underfunded pension plan, while fixed costs are manageable.

The Aa3 GOULT rating is equivalent to the Aa3 issuer rating based on the district's general obligation full faith and credit pledge and authority to levy an unlimited property tax for debt service.