Page 49

Bond Accountability Commission 2 Recommendations Page 46

Results of Sales

Credit Levels CMSD’s 2002 and 2004 Bonds were sold with three levels of credit support, as follows— •

First, CMSD provided its own unlimited tax (Issue 14) credit support that was rated by Standard and Poor’s at a “BBB+” level and by Moody’s at a “Baa1” level (Moody’s now rates CMSD’s Bonds at “Baa2;” Fitch did not rate the Bonds at unenhanced levels). Those are good ratings regarded by many investors as indicating a suitable credit level, known in the market as “investment grade.”

Second, the credit of the 2002 and 2004 Bonds was enhanced by the Ohio Department of Education’s Credit Enhancement Program, resulting in enhanced ratings of “AA-” by Fitch Ratings, “Aa3” by Moody’s Investors Service, and “AA” by Standard and Poor’s. All of those enhanced ratings are excellent.

Third, the 2002 and 2004 Bonds received additional credit support as a result of the purchase of bond insurance, resulting in triple-A ratings by each of the three major rating agencies. Those triple-A ratings, however, are on a

BAC2 Recomendations Final 04062010