Pojoaque Valley Public School District No. 1
CUSIP 73085PBD0
- Issue Currency: United States of America Dollars
- Announcement Date: 20-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: 12-Nov-2018
- News: Moody`s Investors Service downgraded Pojoaque Valley Independent School District 1 (Santa Fe County), NM`s GOULT bond rating to B1 from Baa3 and subsequently withdrew the GOULT rating. At the same time, Moody`s also withdrew the district`s Aa3 enhanced bond rating. These rating actions concluded the review for possible downgrade that was initiated on August 28, 2018. RATINGS RATIONALE The downgrade to B1 was prompted by the continued weakening of already depleted general fund reserves and cash balances that are expected to remain negative through at least the end of fiscal 2019. The rating also incorporates a high pension burden featuring a widening tread water gap and elevated fixed costs. Moody`s has decided to withdraw the ratings because it believes it has insufficient or otherwise inadequate information to support the maintenance of the ratings. Please refer to the Moody`s Investors Service`s Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.
- Issue Currency: United States of America Dollars
- Announcement Date: 28-Aug-2018
- News: Moody`s Investors Service has downgraded to Baa3 from A3 Pojoaque Valley Independent School District 1 (Santa Fe County), NM`s GO rating, affecting $475,000 in Moody`s rated debt. Moody`s also placed the rating under review for further possible downgrade. RATINGS RATIONALE The Baa3 rating reflects the district`s weak financial position as indicated in 2017 audited financials, evidenced by both a negative fund balance and a $1.8 million cash overdraft. Late and reduced state aid payments alongside rising instructional costs contributed to the district`s sharp one year decline in reserves. The rating further incorporates the district`s stagnate local economy with limited growth prospects, a high fixed cost burden and an elevated pension liability. The rating also reflects a moderate debt burden and recent favorable enrollment trends. RATING OUTLOOK The rating is under review for possible downward rating action. The review will consider any additional information Moody`s is able to gather including but not limited to the district`s fiscal 2018 unaudited financial statements, cash flows and fiscal 2019 budget and the current status of reserves and liquidity, as well as information regarding management`s adjustments to expenditures to return to structural balance. FACTORS THAT COULD LEAD TO AN UPGRADE Trend of surplus operations leading to a trend of surplus general fund reserve levels Substantial economic expansion leading to increased assessed values FACTORS THAT COULD LEAD TO A DOWNGRADE Decline of debt service fund liquidity Increase in fixed cost burden Tax base contraction LEGAL SECURITY The bonds are secured by ad valorem taxes that are levied against all taxable property within the district without limitation as to the rate or amount. PROFILE Pojoaque Valley ISD 1 is located in northern Santa Fe County (Aaa stable), approximately 16 miles north of Santa Fe and 17 miles east of Los Alamos. The district serves a population of 10,296 and enrolls 1,979 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.
