KBRA Assigns K1+ Rating to Cobb County School District, GA's Short-Term Construction Notes, Series 2024; Affirms K1+ Rating for Series 2023 Construction Notes and AAA Rating for Implied GO Credit
4 Dec 2023 | New York
KBRA assigns a short-term rating of K1+ to Cobb County School District, Georgia's Short-Term Construction Notes, Series 2024, due December 15, 2024. Proceeds will finance, on a temporary basis, the current costs of constructing, improving and equipping various school facilities approved by voters at referendum, and paying expenses related thereto.
Additionally, KBRA affirms the short-term rating of K1+ on the District's Short-Term Construction Notes, Series 2023 due December 15, 2023, and the long-term rating of AAA with a Stable Outlook for the District's Implied General Obligation Credit.
Key Credit Considerations
- Consistently sound historic coverage of note debt service reflects a conservative approach to budgeting and cash flow management.
- Strong financial flexibility stems from ample General Fund reserves and the District’s ability to increase the General Fund millage rate, if necessary, to support operations and debt service.
- The low to moderate fixed cost burden reflect the District’s historical trend of full pension ADC funding and its large annual OPEB pay-go contribution, somewhat offset by the absence of long-term general obligation debt.
- The broad and rapidly growing resource base demonstrates very favorable trends in assessed valuation, per capita income and employment.
- Ed-SPLOST (Sales Tax) revenues are economically sensitive and subject to volatility.
- Not applicable.
- Unanticipated declines in Ed-SPLOST revenues or increases in Ed-SPLOST capital outlays during calendar year 2024, resulting in materially diminished anticipated cash flow coverage that necessitates use of ad valorem revenues to pay principal and interest on the Notes when due.
To access rating and relevant documents, click here.