SAN FRANCISCO--(BUSINESS WIRE)--Fitch Ratings has affirmed and withdrawn the following Indian Valley Local School District, OH ratings:
--Approximately $1.5 million unlimited tax general obligation (ULTGO) bonds series 2005 at 'AA-';
--Issuer Default Rating (IDR) at 'AA-'.
The Rating Outlook is Stable.
SECURITY
The GO bonds are payable from an unlimited ad valorem tax levied against all taxable property within the district boundaries.
KEY RATING DRIVERS
Fitch has withdrawn the rating as the district has chosen not to participate in the rating process. Fitch will no longer have adequate information to maintain a rating or provide analytical coverage for the district.
Although the level of available information is insufficient for Fitch to fully assess the district's credit quality, Fitch believes the 'AA-' rating most accurately reflects the district's current credit profile based on publicly available information.
Economic Resource Base
Indian Valley Local School District serves a rural area in Tuscarawas County, located in east central Ohio, about 90 miles south of Cleveland. The district's enrollment has remained fairly stable over the last several years at around 1,900.
Revenue Framework: 'bbb' factor assessment
State aid represents the vast majority of district revenue. The district is projected to continue experiencing solid state aid growth. Like other Ohio school districts, Indian Valley relies on voter approval to maintain adequate property tax levies for operations. Despite this weakness, the district has limited levy renewal risk and a largely favorable levy approval history.
Expenditure Framework: 'aa' factor assessment
Fitch estimates expenditure flexibility to be reasonable given past information and moderate carrying costs.
Long-Term Liability Burden: 'aa' factor assessment
Overall debt plus pension liabilities are moderate in relation to personal income. The district's net pension liabilities make up most of the long-term liability burden.
Operating Performance: 'aa' factor assessment
Given positive forecast and recent performance, Fitch expects the district to maintain sufficient reserves for the rating level, with midrange budget flexibility and modest revenue volatility.
RATING SENSITIVITIES
Rating Sensitivities are not applicable as the ratings have been withdrawn.
Additional information is available at 'www.fitchratings.com'.
In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis and InvestorTools.
Applicable Criteria
U.S. Tax-Supported Rating Criteria (pub. 18 Apr 2016)
https://www.fitchratings.com/site/re/879478
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1011014
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1011014
Endorsement Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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