S&P Rts Penn High Sch Bldg Corp, IN First Mtg Bds AA-

Business Wire, June 19, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/19/98--Standard & Poor's today assigned its double-'A'-minus rating to Penn High School Building Corporation, Ind.'s first mortgage refunding bonds series 1998, issued for Penn-Harris-Madison School Corporation.

The rating is issued according to Standard & Poor's recently revised criteria on bonds issued under the Indiana State Aid Intercept Program. On a case-by-case basis, the revised criteria will allow the minimum ratings under the program to rise to double-'A'-minus if certain enhancements are added to individual bond resolutions. These enhancements require schools to have and maintain coverage of maximum annual debt service on outstanding and proposed bonds by state aid of at least 2.0 times (x). In addition, the district is required to make debt service payments to a paying agent at least five days in advance of debt service due dates. The district has named an independent paying agent who has immediate notification and claimant responsibilities to the state in the event a debt service deposit is not made or is insufficient.

With these structural enhancements to bondholder security in place, these series 1998 refunding bonds are rated double-'A'-minus. The bonds are the first Indiana school bonds to qualify for Standard & Poor's double-'A'-minus enhanced Indiana State Aid Intercept Program rating.

OUTLOOK: STABLE

The outlook reflects the strength of the state aid intercept structure, Standard & Poor's said. -- CreditWire

    CONTACT:  Peter V. Murphy, 212/208-1195
                 or
               Michael Forrester, 212/208-1763
               For more information on criteria or subscriptions:
               http://www.ratings.standardpoor.com