PRESS RELEASE: Moody's Assigns Aa3 Rating To The -2-

15th Jul 2010 17:31

DEBT BURDENS MANAGEABLE; NO PLANS FOR FUTURE DEBT The Board's debt burdens are manageable at 1.2 % on a direct basis and 3.9% on an overall basis. Principal is amortized rapidly with 87.6% of debt retired in ten years. The Board has no plans for future debt given that any capital needs or facility replacements will be provided though FEMA funding. The Board is currently negotiating with FEMA for a one sum payment to replace buildings that were destroyed by the hurricane. With no plans for future debt and the rate of debt retirement, the debt burdens will become modest over time. OUTLOOK: The outlook for the Orleans Parish School Board is stable reflecting our belief that the tax base is large and diverse which are mitigating factors for a local economy that has been impacted by the national recession and could be further impacted by the oil spill in the Gulf. Furthermore, the stable outlook reflects solid financial operations and the implementation of sound policies following Hurricane Katrina and our belief that reserves will remain healthy and consistent with the current rating. KEY STATISTICS Population: 354,850 2010 Full valuation: $23.4 billion 2010 Full value per capita: $17,258 2000 Census Per Capita Income: $17,258 (102% of State; 79.9% of US) Direct debt burden: 1.2% Overall debt burden: 3.9% Payout: 87.6% 2009 General Fund balance: $54.2 million (32.45% of District-wide Revenues) Post-sale parity debt: $104 million PRINCIPAL METHODOLOGY AND LAST RATING ACTION The principal methodology used in assigning the rating was "General Obligation Bonds Issued by U.S. Local Governments" published in October 2009 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. This is an initial Aa3 rating for the Orleans Parish School Board. ANALYSTS: Kristin Button, Analyst, Public Finance Group, Moody's Investors Service Michelle Smithen, Backup Analyst, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S ("MIS") CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. 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It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser. (END) Dow Jones Newswires July 15, 2010 12:31 ET (16:31 GMT)