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Moody's Investors Service Inc.

Moody's Assigns Aa3 Rating to Seminole County School District's Sales Tax Revenue Bonds

Strategic Insights

— 1 min read

The rating agency Moody's has assigned an Aa3 rating to Seminole County School District's approximately $150.1 million Sales Tax Revenue Bonds, Series 2025. The district's issuer rating remains Aa2, and its lease appropriation rating remains Aa3. This rating reflects the broad nature of the pledge and the expectation that revenue will continue to provide adequate coverage of maximum annual debt service (MADS) over a 1.5x ratio. The district's pledged revenue has shown limited volatility, and the bond rating is supported by a legal framework that includes an additional bonds test (1.35x).

Key Takeaways:

  • Moody's has assigned an Aa3 rating to Seminole County School District's Sales Tax Revenue Bonds, Series 2025, indicating a moderate level of credit risk.
  • The district's issuer rating remains Aa2, and its lease appropriation rating remains Aa3.
  • The Aa3 rating reflects the district's pledge structure and its ability to cover maximum annual debt service (MADS) over a 1.5x ratio.
  • The district's pledged revenue has shown limited volatility, reducing the risks associated with the bond.
  • The rating is supported by a legal framework that includes an additional bonds test (1.35x).
  • The district has approximately $214.9 million in debt outstanding, making this the current issuance.
  • The district is headquartered in Sanford, Florida, approximately 15 miles northeast of Orlando.

Statistics:

  • Bond rating: Aa3
  • Issuer rating: Aa2
  • Lease appropriation rating: Aa3
  • Maximum annual debt service (MADS) coverage ratio: 1.5x
  • Pledged revenue volatility: Limited
  • Debt outstanding: Approximately $214.9 million
  • Current issuance: Approximately $150.1 million Sales Tax Revenue Bonds, Series 2025

Sources:

  • Moody's Investors Service news release
  • Moody's Ratings methodology: US K-12 Public School Districts, published in July 2024 and available at https://ratings.moodys.com/rmc-documents/425431
  • Rating Methodologies page on https://ratings.moodys.com

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