Moody's Investors Service has affirmed the speculative grade rating on a lease financing for the troubled Coachella Valley Unified School District, despite a recent state bailout of the district.

In May, the state gave a $7.3 million emergency loan to the district for cash flow needs and appointed a trustee to oversee district operations. Moody's said that though the trustee will assume all legal rights and powers over Coachella, the district is not seeking bankruptcy protection. Last year, the Richmond Unified School District filed for bankruptcy and defaulted on an outstanding certificates of participation issue.

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