San Diego Unified School District, CA's 2001-2002 TRANs Series A Rated 'SP-1+'
NEW YORK (Standard & Poor's CreditWire) May 30, 2001 – Standard
& Poor's today assigned its 'SP-1'-plus rating to San
Diego Unified School District, Calif.'s $170 million 2001-2002 TRANs
series A due Aug. 1, 2002. The TRANs are scheduled to sell June 6, 2001.
The rating reflects:
-- The district's strong underlying general credit
characteristics,
-- Strong TRANs debt service coverage at segregation dates and final
maturity provided by net general fund cash balances and other borrowable
funds, and
-- A note structure that includes early impoundment of pledged
revenues.
The notes are secured by taxes, income, revenue, cash receipts, and
other money received for the general fund for fiscal 2001-2002.
The district has pledged to set aside amounts equal to 50% of
maturing principal in January 2002 and the balance of principal and
accrued interest by April 2002. Projected coverage is strong at each of
the set-aside dates--1.50 times (x) in both January and April 2002--and
good at fiscal year-end 2002 (1.05x). The district projects an estimated
$20 million of alternative borrowable funds, which would boost coverage to
1.17x. The note repayment account may be invested in U.S. treasuries or
agencies, money market funds, or guaranteed investment contracts that meet
Standard & Poor's criteria. The district's operating funds
are invested in the San Diego County treasurer's investment pool,
which is rated triple-'Af'/'S1'.
The San Diego Unified School District accounts for approximately 85%
of San Diego's assessed value (AV) and provides K-12 educational
services to almost 141,000 students. District AV grew 8.4% to $68.9
billion in fiscal 2000-2001. Per capita AV is a strong $53,966. The
district ended fiscal 2000 with an operating deficit of $1.2 million. The
unreserved general fund balance was $11.6 million, or 1.3% of
expenditures. The total fund balance in the general fund is projected to
fall to $11.4 million at June 30, 2001, from $30.2 million at June 30,
2000, Standard & Poor's said. -- CreditWire
| Credit Analyst: |
Parry Young, New York (1) 212-438-2120 Gabriel Petek, San Francisco (1) 415-371-5042 |
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