WASHINGTON — Moody's Investors Service affirmed its underlying Aa2 rating of Oregon's Portland Public Schools in advance of a $245.7 million general obligation bond sale next week.
The Multnomah County School District No. 1J bonds, expected to sell April 16, are split between a $33 million federally taxable series and a $212.7 million tax-exempt series.
The rating reflects the district's "strong service area featuring an expanding economy and a large, growing tax base," according to a Moody's report. "The district's direct debt burden is low, and its annual pension liabilities are uniquely favorable given full support for annual contributions by invested proceeds from outstanding pension bonds."
The bonds also carry an Aa1 enhanced rating courtesy of an Oregon state program that is pledged to guarantee school district debt service.
"Key aspects of the program include third party notification of any unpaid debt service and favorable state oversight," Moody's said.
The bonds carry a stable outlook, reflecting the agency's expectation that Aaa-rated Portland's economy will continue to expand.
"We expect that prudent management will maintain a satisfactory financial position especially given revenue growth over the next two years," Moody's said.
