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Moody's Investors Service Inc.

Moody's Assigns Aa2 Rating to Vallivue School District's General Obligation Refunding Bonds

Strategic Insights

— 1 min read

Moody's Investors Service has assigned a Aa2 rating to Canyon County School District 139's (Vallivue) General Obligation Refunding Bonds, Series 2025, in the expected amount of approximately $11.3 million. The district's strong financial position, sound reserves, and capable management support the rating. The district has consistently maintained available operating fund balances above 30% of revenue and has conservative management practices. The rating also reflects the district's strong enrollment and tax base growth, which are likely to persist due to significant development in progress. The Aa2 rating is equivalent to the district's Aa2 issuer rating, based on the district's unlimited property tax pledge dedicated to debt service.

Key Takeaways:

  • Moody's assigned a Aa2 underlying rating to Vallivue School District's General Obligation Refunding Bonds, Series 2025, in the expected amount of approximately $11.3 million.
  • The district's strong financial position, sound reserves, and capable management support the rating, with available operating fund balances above 30% of revenue and conservative management practices.
  • The district's strong enrollment and tax base growth are expected to persist due to significant development in progress, with a full value per capita of $207,000 and relatively average incomes.
  • Leverage is elevated, but near-term debt issuance plans are limited.
  • The Aa2 GOULT rating is equivalent to the Aa2 issuer rating based on the district's unlimited property tax pledge dedicated to debt service.
  • The Aaa enhanced rating reflects the guaranty of the Idaho School Bond Sales Tax Guaranty Program, which pledges the State of Idaho's sales tax revenues for debt service.
  • The program rating reflects the state's ample sales tax revenue coverage of guaranteed debt service payments, strong oversight, and other program mechanics.

Statistics:

  • The district has around $170 million in GOULT debt outstanding post-sale.
  • The district serves approximately 10,340 students as of fiscal 2025.
  • The district operates two high schools, three middle schools, seven elementary schools, and one alternative high school across 143 square miles.

Sources:

  • Moody's Investors Service (2025): "Moody's Assigns Aa2 Rating to Canyon County School District 139's General Obligation Refunding Bonds, Series 2025."

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