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Greenville County School District, SC -- Moody's assigns MIG 1 to Greenville CSD, SC's GO Bonds

·13 min read

Rating Action: Moody's assigns MIG 1 to Greenville CSD, SC's GO BondsGlobal Credit Research - 06 Sep 2022New York, September 06, 2022 -- Moody's Investors Service has assigned a MIG 1 rating to Greenville County School District, South Carolina's $162 million General Obligation Bonds, Series 2022B. Moody's maintains the district's Aa1 issuer rating, the Aa1 rating on the district's long-term general obligation unlimited tax (GOULT) bonds, and the Aa2 rating on the district's installment purchase revenue bonds. The issuer rating reflects the district's ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. Following the new issuances, the district's debt will total approximately $718 million.RATINGS RATIONALEThe MIG 1 rating on the short-term GOULT bonds incorporates the district's long-term credit quality that is reflected in its Aa1 issuer rating, which considers the district's strong financial position, solid resident income, growing enrollment, and manageable leverage. The short-term bonds carry the district's irrevocable full faith, credit and taxing power pledge, and they are ultimately repaid by a dedicated property tax levy that is unlimited by rate or amount. The bonds would also qualify for the South Carolina School District Credit Enhancement Program (Aa1, SCSDCEP), a state-backed pre-default intercept program.RATING OUTLOOKNot applicable.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- Not applicableFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Downgrade of the district's issuer rating and SCSDCEP's programmatic ratingLEGAL SECURITYThe Series 2022B bonds are short-term general obligation bonds that are backed by the district's full faith, credit, resources and taxing power. The bonds have a dedicated property tax millage that is unlimited by rate or amount. Additional security is provided by a lockbox structure under which Greenville County (Aaa stable) performs property tax assessments, collects the district's debt service levy, holds sinking funds and makes debt service payments to the trustee. As general obligations of the district, the bonds are additionally enhanced by the SCSDCEP.USE OF PROCEEDSApproximately 47% of bond proceeds will provide funds to make installment payments on the district's installment purchase revenue bonds. The remainder of the proceeds will finance various district-wide capital improvements.PROFILEGreenville County School District is the largest in the state and 44th largest in the nation, with over 76,000 students. The district provides pre-kindergarten through twelfth grade education and consists of 85 schools including 49 elementary schools, 19 middle schools, 2 K-8 schools and 15 high schools. Additionally, district facilities include 15 special program centers, a maintenance facility, four transportation facilities, a warehouse facility, and two buildings that house central office personnel.METHODOLOGYThe principal methodology used in this rating was Short-term Debt of US States, Municipalities and Nonprofits Methodology published in July 2020 and available at https://ratings.moodys.com/api/rmc-documents/67339. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the issuer/deal page for the respective issuer on https://ratings.moodys.com.The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.This rating is solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website https://ratings.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://ratings.moodys.com/documents/PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on https://ratings.moodys.com.Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating. Jose Cavazos Lead Analyst REGIONAL_NE Moody's Investors Service, Inc. 7 World Trade Center 250 Greenwich Street New York 10007 JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Frederick Cullimore Additional Contact REGIONAL_NE JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. 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