Rating Action: Moody’s upgrades Waelder Independent School District, TX GO to A1 and assigns A1 issuer ratingGlobal Credit Research – 26 Mar 2021New York, March 26, 2021 — Moody’s Investors Service has assigned an A1 issuer rating to Waelder Independent School District (ISD), TX and concurrently upgraded the district’s general obligation unlimited tax (GOULT) rating to A1 from A2. The issuer rating reflects the district’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features. This action affects $2.7 million in Moody’s rated debt and 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.RATINGS RATIONALEThe A1 issuer rating incorporates Waelder ISD’s strong financial position, moderate leverage through fixed costs below its peers, and stable enrollment trend. The rating further reflects the district’s limited yet concentrated economy with top ten taxpayers accounted for 34% of the tax base. The coronavirus pandemic is not a key driver of this rating action, given no significant cuts to state funding are anticipated. Additionally, the district’s strong reserve position provides financial flexibility in event there are adjustments to state aid.The A1 rating on the district’s general obligation bonds is equivalent to the A1 issuer rating given an unlimited property tax pledge that is dedicated for debt service and levied upon all taxable property within the district.RATING OUTLOOKMoody’s does not usually assign outlooks to local governments with this amount of debt.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- Diversification of the economic base- Improved enrollment trendFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Material decline in fund balance or cash- Substantial increase in long-term liabilities or fixed-costs ratio- Sustained weakening of enrollment trendLEGAL SECURITYThe 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 district’s bonds are further secured by the Texas Permanent School Fund’s commitment to pay debt service if necessary.PROFILEWaelder Independent School District is in Gonzales and Caldwell counties in south central Texas, approximately 45 miles southeast of Austin. Current enrollment is approximately 300.METHODOLOGYThe principal methodology used in these ratings was US K-12 Public School Districts Methodology published in January 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBM_1202421. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor 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_1243406.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. Alex Choi Lead Analyst Regional PFG Dallas Moody’s Investors Service, Inc. 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