Thrall Independent School District

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Moody's Upgrades Thrall ISD GO to Aa3

PRESS RELEASE:

Moody's Investors Service has assigned a Aa3 issuer rating to Thrall Independent School District. The issuer rating reflects the district's ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. Concurrently, Moody's has upgraded the underlying rating on the district's general obligation unlimited tax (GOULT) bonds to Aa3 from A2. This action concludes a review for possible upgrade initiated on January 26, 2021 in conjunction with the release of the US K-12 Public School Districts methodology. The district has $13.6 million in Moody's rated debt.

RATINGS RATIONALE:
The Aa3 issuer rating reflects a healthy financial profile, high resident income and rapidly growing enrollment, supported by steady net in-migration and residential development. The rating also incorporates slightly elevated, but manageable long-term liabilities and limited commercial development in the district with full value per capita below peers.
 
The rating assigned to the district's GOULT bonds was upgraded two notches because it is equivalent to the Aa3 issuer rating, based on the district's unlimited property tax that is dedicated to debt service.
 
LEGAL SECURITY:
The district's GOULT bonds are payable from a dedicated ad valorem tax levied by the district on all taxable property without limitation as to rate or amount. The bonds are further secured by the Texas Permanent School Fund's commitment to pay debt service if necessary.
 
Please contact Mr. Blake Schneider, Business Manager-CFO, with any questions 898-0062.