The 'AAA' enhanced rating on Lone Oak Independent School District, Texas' unlimited-tax school building bonds reflects the credit enhancement provided by the Texas Permanent School Fund. The 'BBB+' Standard&Poor's underlying rating (SPUR) reflects the district's: Limited, agricultural-based local economy; Below-average wealth and income levels; and High debt service carrying charge as a percent of expenditures. These characteristics are offset by the district's: Strong financial position, and Manageable future capital needs. The district's full faith and credit pledge secures the bonds. Lone Oak Independent School District, with an estimated population of 3,800, is in Hunt County, 14 miles south of Greenville, Texas, the county seat. Although the local economy is limited primarily to agriculture, the district benefits somewhat from
