Dexter Consolidated School District No. 8
CUSIP 252345FA6
- Issue Currency: United States of America Dollars
- Announcement Date: 18-Jun-2018
- News: Moody`s Investors Service has downgraded to Aa2 from Aa1 the rating on the State of New Mexico`s general obligation bonds and revised the outlook to stable from negative. This action affects approximate $260 million outstanding general obligation bonds. We have also downgraded to Aa3 from Aa2 the programmatic rating on the New Mexico School District Intercept Program, and to Aa3 from Aa2 the rating on the state`s only outstanding series of lease appropriation bonds. Moody`s maintains the Aa1 rating and stable outlook on the state`s senior lien transportation revenue bonds. This rating incorporates a number of credit strengths considered in our special tax methodology, including, but not limited to, the strong legal separation between the pledged transportation revenues and the state`s general fund.
- Issue Currency: United States of America Dollars
- Announcement Date: 18-Sep-2018
- News: Moody`s Investors Service has downgraded to A3 from A2 Dexter Consolidated School District 8 (Chaves County), NM`s outstanding general obligation unlimited tax bonds. This rating action impacts $545,000 in Moody`s rated debt. RATINGS RATIONALE The one notch downgrade to A3 reflects the district`s small tax base concentrated in the dairy industry paired with a series of deficits which have materially impacted reserves and liquidity. The rating also considers the district`s minimal debt profile alongside an elevated and rising pension burden and fixed cost burden. RATING OUTLOOK Moody`s generally does not assign outlooks to local government credits with this amount of debt outstanding. FACTORS THAT COULD LEAD TO AN UPGRADE - Sustained and material increases in general fund reserves and liquidity - Significant reductions to the district`s pension and fixed cost burdens FACTORS THAT COULD LEAD TO A DOWNGRADE - Continued years of deficit spending - Economic contraction; loss of a top ten taxpayer - Further enrollment declines without corresponding expenditure adjustments LEGAL SECURITY The Bonds are general obligations of the Dexter Consolidated School District No. 8, Chaves County, New Mexico, payable solely out of general (ad valorem) property taxes that are required to be levied against all taxable property in the District without limitation as to rate or amount. PROFILE The district serves a bedroom community to Roswell, NM (Aa2), covering 683 square miles including the Town of Dexter and unincorporated portions of Chaves County (A1). The district enrolls approximately 960 students. METHODOLOGY The principal methodology used in this rating was US Local Government General Obligation Debt published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
- Issue Currency: United States of America Dollars
- Announcement Date: 18-Sep-2018
- News: Moody`s Investors Service has downgraded to A3 from A2 Dexter Consolidated School District 8 (Chaves County), NM`s outstanding general obligation unlimited tax bonds. This rating action impacts $545,000 in Moody`s rated debt. RATINGS RATIONALE The one notch downgrade to A3 reflects the district`s small tax base concentrated in the dairy industry paired with a series of deficits which have materially impacted reserves and liquidity. The rating also considers the district`s minimal debt profile alongside an elevated and rising pension burden and fixed cost burden. RATING OUTLOOK Moody`s generally does not assign outlooks to local government credits with this amount of debt outstanding. FACTORS THAT COULD LEAD TO AN UPGRADE - Sustained and material increases in general fund reserves and liquidity - Significant reductions to the district`s pension and fixed cost burdens FACTORS THAT COULD LEAD TO A DOWNGRADE - Continued years of deficit spending - Economic contraction; loss of a top ten taxpayer - Further enrollment declines without corresponding expenditure adjustments LEGAL SECURITY The Bonds are general obligations of the Dexter Consolidated School District No. 8, Chaves County, New Mexico, payable solely out of general (ad valorem) property taxes that are required to be levied against all taxable property in the District without limitation as to rate or amount. PROFILE The district serves a bedroom community to Roswell, NM (Aa2), covering 683 square miles including the Town of Dexter and unincorporated portions of Chaves County (A1). The district enrolls approximately 960 students.
