Rating Action: Moody's assigns Aa2 enhanced to Paragould School District 1, AR's GOLT BondsGlobal Credit Research - 13 Apr 2021New York, April 13, 2021 -- Moody's Investors Service has assigned a Aa2 enhanced rating with a stable outlook to Paragould School District 1, AR's $12.4 million Refunding Bonds. The Aa2 enhanced rating and stable outlook are based on the Arkansas School District Intercept Program rating.RATINGS RATIONALEThe Aa2 rating is based on the security provided by the State of Arkansas' (general obligation rated Aa1 stable) School District Intercept Program (the Program). The Arkansas Department of Education (ADE) commits to forward any funds in its Public School Fund (PSF) to the school district's paying agent in event of a pending debt service deficiency. The Aa2 rating also reflects the strong sufficiency of available revenues and transaction structure of this financing.RATING OUTLOOKThe stable outlook reflects the stable outlook assigned to the State of Arkansas's programmatic long term issuer rating.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING- upgrade of the State of Arkansas' programmatic long term issuer ratingFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING- Downgrade of the State of Arkansas' programmatic long term issuer rating- Significantly reduced projected coverage by available ADE funds- Weakening of notification and timing provisions- Weakening of ADE oversightLEGAL SECURITYThe bonds are secured by a limited, general obligation pledge from the district. Additionally the bonds are further secured by the state of Arkansas' school district intercept program.USE OF PROCEEDSProceeds from the offerings will be used to refund certain outstanding obligations.PROFILEThe obligor is a school district in the State of Arkansas.METHODOLOGYThe principal methodology used in this rating was State Aid Intercept Programs and Financings published in December 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1260094. Alternatively, please see the Rating Methodologies page on www.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 at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.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 ratings tab on the issuer/entity page for the respective issuer on www.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://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.Please see www.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 ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Tobias Oder Lead Analyst Regional PFG Dallas Moody's Investors Service, Inc. 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