Standard&Poor's Ratings Services assigned its 'A' long-term rating to Underwood Community School District, Iowa's series 2012 school infrastructure sales, services, and use tax revenue bonds. The outlook is stable. The rating reflects our view of the district's: First-lien pledge of sales tax receipts, which are transitioning to a statutory statewide average distribution and thus will be enhanced by the state's economic diversity; Adequate maximum annual debt service (MADS) coverage of 1.29x based on the assumption of stable enrollment at the October 2011 count and projected sales tax collections; and Adequate legal provisions, including a 1.2x additional bonds test. Partly offsetting the above strengths is our opinion of the potential for fluctuations in statewide sales tax collections. We understand
