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Moody's Investors Service Inc.

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

Strategic Insights

— 1 min read

Moody's Investors Service has assigned a MIG 1 rating to Tioga Central School District, NY's $3.9 million Bond Anticipation Notes, 2025 (Renewals). 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. After the new issuance, the district will have approximately $31.2 million in debt outstanding.

Key Takeaways:

  • Moody's assigned a MIG 1 rating to Tioga Central School District's $3.9 million Bond Anticipation Notes, 2025 (Renewals).
  • The MIG 1 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 would likely qualify for the enhancement rating at the time of take-out given strong coverage of debt service by state aid revenues, which for 2026 is 16.5x.
  • The rating is supported by the district's strong liquidity and coverage, with state aid revenues covering debt service by a significant margin.
  • The district's location in Tioga County and its provision of Pre-K-12 education to approximately 900 students were also considered in the rating process.
  • The MIG 1 rating indicates that the district's short-term debt is considered to be of high quality and is less likely to default.

Statistics:

  • The district has approximately $31.2 million in debt outstanding after the new issuance.
  • The MIG 1 rating reflects 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 debt service is covered by state aid revenues for 2026 at a ratio of 16.5x.
  • The district provides Pre-K-12 education to approximately 900 students.
  • The district is located in Tioga County, NY, about 30 miles south of Ithaca and 30 miles west of Binghamton.

Sources:

  • Moody's Investors Service, "Moody's Ratings"
  • New York State Section 99-b Intercept Program, "Aa3 stable rating" (no date)
  • US Municipal Short-term Debt published in October 2024, "Available at https://ratings.moodys.com/rmc-documents/430699"
  • Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.

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