Moody's cuts White Plains, N.Y., school bonds to Aa3

Moody's Investors Service said it assigned an Aa3 rating to White Plains City School District's $50 million 2008 bond issue and downgraded to Aa3 from Aa2 the long-term general obligation rating on the New York district's $32.9 million in previously issued outstanding parity debt.

The expected sale date of the new bonds is June 5.

Proceeds from this issue will provide $35 million to finance the construction of a new elementary school and additions and renovations to existing school facilities in new money, as well as $15 million to permanently finance $15 million of bond anticipation notes payable June 16, 2008.

The downgrade reflects the district's narrowed financial position due to ongoing tax certiorari settlements and expectations that reserve levels will diminish soon, Moody's said.

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