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Moody's Investors Service Inc.

Moody's Assigns MIG 1 Rating to Moravia Central School District's Bond Anticipation Notes

Strategic Insights

— 1 min read

Moody's Investors Service has assigned a MIG 1 rating to Moravia Central School District's approximately $11.46 million Bond Anticipation Notes, 2025 Series A, citing the long-term credit quality of the anticipated take-out financing supported by the New York State Section 99-b Intercept Program. The district's strong coverage of debt service with state aid revenues, projected to be 4.7 times based on the 2026 adopted budget, supports the enhancement rating. Moody's notes that a decline in the district's coverage to below 1.0x or a downgrade of the State of New York's issuer rating could lead to a rating downgrade.

Key Takeaways:

  • Moody's assigned a MIG 1 rating to Moravia Central School District's Bond Anticipation Notes, 2025 Series A, reflecting the long-term credit quality of the anticipated take-out financing supported by the New York State Section 99-b Intercept Program.
  • The district's coverage of debt service with state aid revenues is projected to be 4.7 times based on the 2026 adopted budget, supporting the enhancement rating.
  • The district would likely qualify for the enhancement rating at the time of take-out given the strong coverage of debt service.
  • The principal methodology used in this rating was US Municipal Short-term Debt, published in October 2024, and available at ratings.moodys.com/rmc-documents/430699.
  • Moravia Central School District offers K-12 education to approximately 857 students across two school buildings, covering approximately 155 square miles across the counties of Cayuga, Tompkins, and Onondaga.

Statistics:

  • $11.46 million: the approximate face value of the Bond Anticipation Notes, 2025 Series A.
  • 4.7 times: projected coverage of debt service with state aid revenues based on the 2026 adopted budget.
  • 155 square miles: the approximate area covered by Moravia Central School District across the counties of Cayuga, Tompkins, and Onondaga.
  • 857: the approximate number of students enrolled in Moravia Central School District.

Sources:

  • Moody's Ratings, Moody's Investors Service, (Rating Action, 2025)
  • US Municipal Short-term Debt, Moody's Investors Service, October 2024, available at https://ratings.moodys.com/rmc-documents/430699.

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