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Moody's Investors Service Inc.

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

Strategic Insights

— 1 min read

The Moody's Investors Service has recently issued a rating for the Morris Central School District's Bond Anticipation Notes, 2025, assigning a MIG 1 rating. This rating reflects the long-term credit quality of the anticipated take-out financing supported by the New York State Section 99-b Intercept Program, which is currently rated Aa3 stable. The district is expected to qualify for the enhancement rating at the time of take-out due to strong coverage of debt service by state aid revenues, estimated to be 5 times the 2026 budgeted amount.

Key Takeaways:

  • The Moody's Investors Service has assigned a MIG 1 rating to the Morris Central School District's $13.4 million Bond Anticipation Notes, 2025.
  • The rating reflects the long-term credit quality of the anticipated take-out financing supported by the New York State Section 99-b Intercept Program, which is rated Aa3 stable.
  • The district is expected to qualify for the enhancement rating at the time of take-out due to strong coverage of debt service by state aid revenues, estimated to be 5 times the 2026 budgeted amount.
  • The district is located in Otsego County, approximately 60 miles north of Binghamton.
  • The district provides Pre-K-12 education to approximately 320 students.
  • The principal methodology used in this rating was US Municipal Short-term Debt published in October 2024.
  • The district's liquidity and coverage are strong, with an estimated 5 times coverage of debt service by state aid revenues.

Statistics:

  • $13.4 million: The approximate amount of the Bond Anticipation Notes, 2025.
  • 5 times: The estimated coverage of debt service by state aid revenues in 2026.
  • 2024: The year in which the updated methodology, US Municipal Short-term Debt, was published.
  • A2 stable: The rating of Binghamton, located approximately 60 miles south of the district.

Sources:

  • Moody's Investors Service (2024). US Municipal Short-term Debt.
  • https://ratings.moodys.com/rmc-documents/430699
  • https://ratings.moodys.com for a copy of the US Municipal Short-term Debt methodology.

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