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Moody's Gives GVSD Bonds Top Rating

The agency assigned its highest rating to the district, Aaa, citing a large, affluent tax base among its reasons.

Moody's Investors Service announced Monday that it had assigned Great Valley School District's General Obligation Bonds 2013 series a Aaa rating, the highest possible. The expected sale date of the $10 million bond series is Jan. 11.

"Concurrently, Moody's has affirmed the Aaa rating on the district's $65.2 million of general obligation debt, including the current issue," according to the Moody's website.

The rating agency's breakdown of the district's strengths and weaknesses echoes many of the points made during the district's board of directors meetings:

STRENGTHS

-Large, affluent tax base

-Manageable debt burden

-Healthy financial reserves

CHALLENGES

-Increased fixed costs including pension and health care

OUTLOOK

The stable outlook reflects Moody's belief the district will maintain stable financial operations given management's history of conservative budgeting that has resulted in an ample financial cushion.

What could make the rating go DOWN:

-Increased debt burden

-Deterioration of General Fund reserves

-Significant and protracted declines in the district's tax base

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