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MOODY'S ASSIGNS Aa3 MOUNT DIABLO USD'S, CA GO BONDS

Issue: General Obligation Refunding Bonds, Election of 2002, Series B-2
Issuer: Mount Diablo Unified School District State: CA Country: USA
Date: 3/1/2012 Rating Action: Assign
Outlook Action: Assign
MOODY'S ASSIGNS Aa3 MOUNT DIABLO USD'S, CA GO BONDS



APPROXIMATELY $313 MILLION IN GENERAL OBLIGATION DEBT AFFECTED



New York, March 01, 2012 -- Moody's Rating


Issue: General Obligation Refunding Bonds, Election of 2002, Series B-2;
Rating: Aa3; Sale Amount: $43,000,000; Expected Sale Date: 3/6/12; Rating
Description: General Obligation


Opinion


Moody's Investors Service has assigned an Aa3 rating to the Mount Diablo Unified School District's General Obligation Refunding Bonds, Election of 2002, Series B-2. We have also affirmed the Aa3 rating on $313 million of outstanding general obligation bonds.


SUMMARY RATINGS RATIONALE


The bonds are secured by an unlimited property tax pledge of the district.
The Aa3 rating reflects the district's large tax base, above-average income levels of district residents, strong financial operations, and modest debt burdens.


KEY CREDIT STRENGTHS


-Large and diverse tax base.


-Very strong reserve position.


KEY CREDIT CHALLENGES


-Declining AV.


-Slightly above average direct debt.


What could move the rating-UP


- Trend of significant growth in tax base assessed valuation


- Significant increase in the District's reserves


What could move the rating-DOWN


- Protracted decline in the District's assessed valuation


- Significant deterioration in the District's reserves


The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.


REGULATORY DISCLOSURES


Although this credit rating has been issued in a non-EU country which has not been recognized as endorsable at this date, this credit rating is deemed "EU qualified by extension" and may still be used by financial institutions for regulatory purposes until 30 April 2012. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.


For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt 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 relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant 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.


Information sources used to prepare the rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service's information, and confidential and proprietary Moody's Analytics'
information.


Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.


Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.


Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.


Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.


Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.


Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.


The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.


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.


Kevork Khrimian
Vice President - Senior Analyst
Public Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


Michael Wertz
Analyst
Public Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.




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