Lerch, Vinci & Higgins, LLP

Moody's Downgrades to Aa3 from Aa2 New Jersey School Bond Reserve Guarantee Program
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November 5, 2011

On October 13, 2011, Moody’s Investors Service (“Moody’s”) downgraded to Aa3 from Aa2 the rating of New Jersey’s School Bond Reserve Guarantee Program (the “Program”).  This program guarantees the debt service payments on bonds issued for educational purposes by New Jersey public schools, municipalities and counties. 

The large majority of bonds issues for educational purposes in New Jersey and rated by Moody’s, carry a rating on those bonds based on the Program.  As a result of this downgrade, clients with outstanding bonds, rated by Moody’s under this Program, are required to file a Material Events Notice (the “Notice”) pursuant to their continuing disclosure requirements made at the time of the bonds issuance.  This Notice is required to be filed with the Electronic Municipal Market Access (“EMMA”) system. 

Numerous districts were identified by Moody’s as having bonds impacted by this downgrade.  As a result it is important that the required Notice be filed in a timely fashion. 

Please contact your Bond Counsel or our office if you have any questions or would like assistance with the preparation and/or filing of this Notice with EMMA. For more information, please contact Paige Fischer at 201-791-7100.

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