S&P Assigns Single-'A'-plus Rating to Kings Local School District

Business Wire, June 22, 1998

NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 6/22/98--Standard & Poor's Monday assigned its single-'A'-plus rating to Kings Local School District, Ohio's school improvement G.O. refunding bonds series 1998.

Standard & Poor's also assigned its single-'A'-plus rating to the district's energy conservation G.O. bonds series 1998. The bonds are scheduled to sell June 24, 1998.

In addition, Standard & Poor's affirmed its single-'A'-plus rating on the district's outstanding G.O. bonds.

The rating reflects: -0-

--   An expanding local employment base participating in the
     Cincinnati economy;

--   Upscale residential development, helping to solidify the
     district's already above-average income levels;

--   An improved financial position postponing the district's need for
     additional tax levies; and

--   Minimal capital needs.

The district is located 20 miles northeast of downtown Cincinnati and includes portions of Deerfield, Union, and Hamilton townships, and parts of Mason, Lebanon, and South Lebanon. District residents have long benefited from their proximity to Cincinnati, but the recent arrivals or expansions of employers such as Anthem Blue Cross and Blue Shield Co. and Proctor & Gamble Co.'s worldwide research headquarters adjacent to the district have brought more jobs into the immediate area.

Upscale residential construction is occurring in the northern parts of the district, raising income levels in the traditionally less affluent mining areas. On average, however, district personal income levels are already high, rising from 115% of the state average in 1985 to 140% in 1995. Despite the recent moderation of development, growth in property values continues to be strong, with annual assessed value growth averaging 8% during the past three years, driving the 1998 level to $411 million.

The district's finances have improved with three years of operating surpluses, due in part to a 7.9 mill operating levy passed in 1993 and continued conservative management. Accordingly, the district will not need to request another tax increase in 1999 as originally projected, but can wait until 2001. The 1997 general fund balance totaled $3.5 million, equivalent to 19% of operating expenditures. Another $474,000 surplus is projected for fiscal year-end June 30, 1998.

Debt ratios remain moderate at $1,340 per capita and 1.6% of market value. As a percent of operating expenditures, however, debt service is fairly high at 15%. The district manages maintenance and other capital requirements with an ongoing five-year plan, funded by a permanent improvement levy generating about $1 million per year. No additional debt needs exist for the foreseeable future.

OUTLOOK: STABLE The outlook reflects the expectation of continued moderate growth, conservative financial management, and voter support, Standard & Poor's said. -- CreditWire

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