Moody's Assigns Bond Rating For Port Washington School District

PORT WASHINGTON, NY — The Port Washington Union Free School District has been assigned an MIG 1 rating by Moody's Investors Service for its $59 million bond anticipation notes for 2020, denoting the district has a superior credit quality.

Moody's said the rating, assigned Monday, reflected the long-term credit quality of the "anticipated take-out financing supported by the New York State Section 99-b Intercept Program," which is rated Aa3.

"The district would likely qualify for the enhancement rating at the time of take-out given strong coverage of debt service of state aid revenues, which in 2019 was 1.2 times," Moody's said. "In addition, the rating reflects moderate refinancing risks, which includes plans to refinance the debt two weeks prior to maturity with limited alternatives; and moderate projected liquidity to cover debt service."

Moody's also addressed the ongoing coronavirus pandemic, saying it views the outbreak as a "social risk" under its environmental, social and governance framework due to the "substantial implications" for public health and safety.

"The coronavirus crisis is not a key driver for this rating action," Moody's said. We do not see any material immediate credit risks for Port Washington Union Free School District, NY."

However, the credit rating agency said coronavirus situation is rapidly evolving. Longer term impacts will depend on the severity of the crisis, as well as its duration.

The Port Washington public school district covers an area of about 10.3 square miles and has an enrollment of about 5,500, which has remained steady over the last five years.