Moody’s Investors Service has upgraded Monroe-Woodbury Central School District’s general obligation unlimited tax (GOULT) rating to Aa2 from Aa3.
Concurrently, Moody’s has assigned a Aa2 rating to the district’s $4,000,000 school district serial bonds - 2020. The bonds are issued for the construction of various alterations and improvements to the Monroe-Woodbury High School.
According to Moody’s web site, the upgrade to Aa2 reflects the district’s substantially growing tax base located within rapidly developing Orange County in New York’s Hudson Valley.
“The district’s financial position is robust and well positioned to withstand the pandemic-driven downturn,” Moody’s Investors Service wrote about Monroe-Woodbury. “The district further benefits from an affluent residential population and stable enrollment. Long term liabilities and fixed costs are manageable. The coronavirus is not a primary driver of the rating given that management implemented expenditure cuts to the 2021 budget in anticipation of possible state aid revenue declines.”
Moody’s Investors Service provides investors with credit ratings, risk analysis and research for stocks, bonds and government entities.
Moody’s assigns ratings on the basis of assessed risk and the borrower’s ability to make interest payments and its ratings are closely watched by many investors.
Obligations rated A2 are considered upper medium grade and are subject to low credit risk.
Moody’s does not typically assign outlooks to local government credits with this amount of debt outstanding.
The investor service cited the following reasons for the rating upgrade:
Sustained growth of reserves and liquidity; and
Continued tax base expansion and improved resident wealth indicators.
Monroe-Woodbury School District is located in Orange County (Aa2 stable). The district serves the Town of Monroe and portions of the Towns of Woodbury, Blooming Grove (Aa2), Chester (Aa3) and Tuxedo (Baa2 positive).
The district is largely suburban residential with significant retail and some industrial presence. The district consists of five elementary schools, one middle school and one high school with a total enrollment of approximately 6,660 students.