The rating on Newark Unified School District, Calif.'s bonds reflects: The general creditworthiness of the district, A legal structure that includes a covenant to budget and appropriate annual lease payments, The strong essentiality of the leased assets, The district's covenant to appropriate and budget annual lease payments, and Additional strength provided by a voter-approved tax override that is pledged to bond repayment. The bonds are secured by district lease rental payments. Under an asset-transfer lease agreement with the Newark Unified School District Corp. (a nonprofit public benefit corporation), the district has covenanted to budget appropriate lease payments for two elementary schools through the term of the bonds. Together, the two school buildings house 29 permanent classrooms, six portable classrooms, a
