Indiana Bond Bank Series 2009 Bond Rating Revised To 'AA+'; Outlook Stable
CHICAGO (S&P Global Ratings) Jan. 18, 2017--S&P Global Ratings has corrected by raising its rating on the Indiana Bond Bank's series 2009 qualified school construction bonds to 'AA+' from 'A+'. The outlook is stable. S&P Global Ratings also discontinued its rating on the Indiana Bond Bank's series 2015E taxable school severance refunding bonds, which have been fully defeased. The rating should have been raised on the series 2009 qualified school construction bonds to 'AA+' from 'A+' on March 25, 2015, when S&P Global Ratings raised the program rating for Danville Community School Corp. to 'AA+', after state aid increased to a level providing 2x maximum annual debt service coverage. The series 2009 qualified school construction bonds are supported by a pool of participating school corporations, and the rating reflects each school corporation meeting our Indiana State Aid Intercept Program rating criteria." Prior to March 25, 2015, the rating on the 2009 qualified school construction bonds was constrained by Danville Community School Corp.'s underlying 'A+' rating, because unlike all of the other participating school districts, Danville Community School Corp. failed to maintain 2x maximum annual debt service (MADS) coverage. The 'AA+' rating on the 2009 qualified school construction bonds is supported by the availability of state aid to be intercepted to cover debt service payments. At this time, all participants for the bonds maintain at least 2x MADS coverage of state aid. S&P Global Ratings discontinued the 'A' rating on the bond bank's series 2015E taxable school severance refunding bonds because the bonds were fully defeased. The rating service notes, however, that the rating on the series 2015E bonds should have been raised to 'AA+' from 'A' on Oct. 14, 2016, when S&P Global Ratings raised Munster School Town's program rating to 'AA+' from 'A', after state aid increased to a level providing 2x MADS coverage. These bonds were supported by Munster School Town, and the rating reflected the school corporation meeting our Indiana State Aid Intercept Program rating criteria.
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| Primary Credit Analyst: | John Sauter, Chicago (1) 312-233-7027; john.sauter@spglobal.com |
| Secondary Contact: | Anna Uboytseva, Chicago (1) 312-233-7067; anna.uboytseva@spglobal.com |
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