School District No. One of the Parish of St. James
CUSIP 790109CC4
- Issue Currency: United States of America Dollars
- Announcement Date: 12-Oct-2018
- News: Moody`s Investors Service has downgraded to A2 from A1 St. James Parish School District 1, LA`s general obligation unlimited tax bonds impacting $20.4 million. The rating further considers $61.4 million in debt not rated by Moody`s. RATINGS RATIONALE The downgrade to A2 reflects the district`s weakened financial position to a level that is inconsistent with peers and is projected to further decline in fiscal 2018. The narrow reserve position is challenging because over 70% of the district`s revenues are derived from property taxes and sales taxes which are both significantly exposed to the oil and gas industry. The rating further incorporates the expectation that expenditure cuts and economic development will enable the district to balance operations and stabilize reserves over the next 12-18 months, although reserves will likely remain at a more limited level. Stable enrollment trends, slightly below average resident income levels, and high fixed costs were additional considerations in the rating.
- Issue Currency: United States of America Dollars
- Announcement Date: 12-Oct-2018
- News: Moody`s Investors Service has downgraded to A2 from A1 St. James Parish School District 1, LA`s general obligation unlimited tax bonds impacting $20.4 million. The rating further considers $61.4 million in debt not rated by Moody`s. RATINGS RATIONALE The downgrade to A2 reflects the district`s weakened financial position to a level that is inconsistent with peers and is projected to further decline in fiscal 2018. The narrow reserve position is challenging because over 70% of the district`s revenues are derived from property taxes and sales taxes which are both significantly exposed to the oil and gas industry. The rating further incorporates the expectation that expenditure cuts and economic development will enable the district to balance operations and stabilize reserves over the next 12-18 months, although reserves will likely remain at a more limited level. Stable enrollment trends, slightly below average resident income levels, and high fixed costs were additional considerations in the rating.
- Issue Currency: United States of America Dollars
- Announcement Date: 09-Oct-2018
- News: Moody`s Investors Service has downgraded to A2 from A1 St. James Parish School District 1, LA`s general obligation unlimited tax bonds impacting $20.4 million. The rating further considers $61.4 million in debt not rated by Moody`s. RATINGS RATIONALE The downgrade to A2 reflects the district`s weakened financial position to a level that is inconsistent with peers and is projected to further decline in fiscal 2018. The narrow reserve position is challenging because over 70% of the district`s revenues are derived from property taxes and sales taxes which are both significantly exposed to the oil and gas industry. The rating further incorporates the expectation that expenditure cuts and economic development will enable the district to balance operations and stabilize reserves over the next 12-18 months, although reserves will likely remain at a more limited level. Stable enrollment trends, slightly below average resident income levels, and high fixed costs were additional considerations in the rating.
