Rating Action: Moody's assigns Aa2 to Maury County, TN's $7.8M GO School and Public Improvement Refunding Bonds, Series 2020

Global Credit Research - 04 Dec 2020

New York, December 04, 2020 -- Moody's Investors Service has assigned a Aa2 rating to Maury County, TN's $7.815 million General Obligation School and Public Improvement Refunding Bonds, Series 2020. Moody's maintains a Aa2 rating on the county's outstanding parity bonds.

RATINGS RATIONALE

The Aa2 general obligation unlimited tax rating reflects the county's growing tax base with moderate taxpayer concentration, a stable financial position marked by healthy reserve levels and an above-average but manageable debt profile.

We regard the coronavirus outbreak as a social risk under our ESG framework, given the substantial implications for public health and safety. Maury County's largest revenue source is property taxes, which were not affected by the pandemic in fiscal 2020 and management does not anticipate any significant impact to collections in fiscal 2021. Additionally, sales tax revenues which are predominantly allocated to local schools and cities, also remained strong throughout fiscal 2020 and into fiscal 2021. As a result, the county's financial position is expected to remain solid over the medium term. The longer term impact will depend on both the severity and duration of the pandemic. The situation surrounding coronavirus continues to evolve. If our view of the credit quality of the county changes, we will update the rating and/or outlook at that time.

RATING OUTLOOK

Outlooks are not typically assigned to local government issuers with this amount of debt outstanding.

FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING

- Decreases in debt levels

- Diversification of tax base and improved socioeconomic indicators

- Maintenance of strong reserve and liquidity levels

FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING

- Significant increases in debt levels

- Material deterioration of tax base resulting in pressured revenue collections

- Reduced financial flexibility due to decreases in reserve and cash levels

LEGAL SECURITY

The bonds are payable from unlimited ad valorem taxes levied on all taxable property within the county. For the prompt payment of principal of and interest on the bonds, the full faith and credit of the county are irrevocably pledged.

USE OF PROCEEDS

Proceeds from the Series 2020 bonds will be used to finance the construction and renovation of existing county school facilities as well as refund the county's outstanding State Revolving Fund Loan 2007 and Water Revenue and Tax Bonds, Series 2006.

PROFILE

Maury County is located 40 miles south of Nashville and Davidson County (Metro. Govt. of Nashville & Davidson Cnty, Aa2 stable), bordering Williamson County (Aaa stable). Interstate 65, which runs into Nashville, passes through the eastern half of the county providing residents with easy access to a diverse employment base. Maury County's current population is approximately 89,776 (2018 American Community Survey).

METHODOLOGY

The principal methodology used in this rating was US Local Government General Obligation Debt published in July 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1230443. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Christopher Coviello Lead Analyst Regional PFG Northeast Moody's Investors Service, Inc. 7 World Trade Center 250 Greenwich Street New York 10007 US JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Douglas Goldmacher Additional Contact Regional PFG Northeast JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653

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