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Local bonds maintain high ratings

While the nation’s bond rating may have been lowered, that of the Lamar County board of education is still high. The Georgia Fund 1, which includes bonds from Lamar County, will maintain a AAAm rating since it falls into the category of a principal stability fund. Principal Stability Fund ratings have an ‘m’ suffix (for example, ‘˜AAAm’) to distinguish the principal stability rating from Standard & Poor’s issue or issuer credit ratings. The Georgia office of the state treasurer notified the school system that the funds to which it has assigned principal stability fund ratings are unaffected by the lowering of the longterm rating on the United States of America to AA+ on Aug. 5. Funds with PSF ratings seek to maintain a stable or accumulating net asset value. They are closely linked to the short-term ratings on the U.S. government because, for a fund to be eligible for an investment-grade rating, all investments must carry a Standard & Poor’s shortterm rating of A-1+ or A-1. The lowering of the long-term rating does not directly affect the ratings on these funds and the credit quality of the U.S. still meets the credit quality standards for all PSFR categories.

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