Article: Philadelphia school district to issue $220 million in GOs.(general obligation bonds)

The Philadelphia School District plans to sell up to $220 million of negotiated general obligation bonds today as it struggles to achieve a sound budget without being able to raise taxes.

The combined $161 million new-money and $59 million refunding issue will be negotiated because the issue is large, complex, and rated below investment grade by Moody's Investors Service, said Paul Flynn, a senior municipal bond analyst with the Vanguard Group Inc.

Since 1986, Moody's has rated the credit's uninsured long-term debt Ba1, one notch below investment grade. Standard & Poor's Corp. rates the district's underlying debt an investment-grade A, and Fitch Investors ...

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