Rating Action: Moody's assigns initial Aaa UND and Aaa ENH to Park City School District, UT's GOs; UND outlook stableGlobal Credit Research - 31 Jan 2022New York, January 31, 2022 -- Moody's Investors Service has assigned initial Aaa underlying and enhanced ratings to Park City School District, UT's $68.5 million General Obligation Bonds (Utah School Bond Guaranty Program), Series 2022. Moody's has also assigned an initial Aaa issuer rating. The issuer rating reflects the district's ability to repay debt and debt-like obligations without consideration of any pledge, security, or structural features. The current issuance reflects all the district's outstanding general obligation unlimited tax (GOULT) debt. The outlook on the issuer and GO ratings is stable.RATINGS RATIONALEThe Aaa issuer rating reflects the district's robust local economy in the Salt Lake City metro area with a very strong resident wealth and income profile. Enrollment has declined modestly due in part to the pandemic and is projected to continue decreasing at a similar rate because of demographic trends and affordability in the area. Despite this, the district will continue to maintain strong reserves that are supported by property tax growth, sound management and conservative budgeting. The rating also considers the district's manageable long-term liabilities and low fixed costs.The Aaa rating assigned to the district's GOULT bonds is equivalent to its Aaa issuer rating, based on the district's unlimited property tax pledge that is dedicated to debt service.The Aaa enhanced rating is based on the additional security provided to bondholders by the Utah School District Bond Guaranty Program (Aaa). Under this program, the state's full faith and credit guarantees debt service payments by transfer of the state's general funds to the paying agent in the event of a shortfall for the district.RATING OUTLOOKThe stable outlook on the GO and issuer ratings reflects our expectation of continued growth in the district's robust local economy and that the district will maintain a strong and stable financial position.FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS- N/AFACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS- Significant enrollment declines- Material deterioration of the district's reserves- Growth in long-term liabilities beyond current expectationsLEGAL SECURITYThe GOULT bonds are secured by the district's unlimited property tax pledge.The Utah School District Bond Guaranty Program pledges the state's full faith and credit to make whole any shortfall in debt service by the district, if necessary, on a timely basis for payment to bondholders.USE OF PROCEEDSBond proceeds will be used to acquire, construct, equip and furnish school facilities, including additions and remodeling of Park City High School and additions to Jeremy Ranch Elementary and McPolin Elementary.PROFILEPark City School District, UT covers the western portion of Summit County and is located approximately 30 miles southeast of Salt Lake City (Aaa stable). Park City (Aaa stable) is the only incorporated city in the district and serves as the district's headquarters. Other smaller unincorporated communities include Hidden Cove, Jeremy Ranch, Pinebrook, Silver Creek, Silver Summit, Snyderville, Summit Park and Timberline. The district operates four elementary schools, one middle school, one junior high school, one high school and had fiscal 2021 enrollment of 4,696 students.METHODOLOGYThe principal methodology used in the issuer and underlying 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. The principal methodology used in the enhanced rating was Rating Transactions Based on the Credit Substitution Approach: Letter of Credit-backed, Insured and Guaranteed Debts published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1068154. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. 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 http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.At least one ESG consideration was material to the credit rating action(s) announced and described above.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. 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