Community Corner
San Bruno Park School District Receives Rating Upgrade From Moody
Resulting in Savings to Taxpayers
Article Source: San Bruno Park School District - San Bruno CA
San Bruno Park School District Receives Rating Upgrade from Moody’s
– Resulting in Savings to Taxpayers
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February 5, 2019. San Bruno, CA.
San Bruno Park School District has received an upgrade from Moody’s on its general obligation bonds to category “Aa3” on Moody’s global long term rating scale. The upgrade is attributed to the District’s improved financial position, prudent fiscal management, and strong local economy. Moody’s also removed a previous “negative” outlook on earlier bond ratings. Moody’s assigns ratings on the basis of assessed risk and the borrower’s ability to make interest payments. Moody’s ratings are closely watched by investors throughout the world.
Find out what's happening in San Brunofor free with the latest updates from Patch.
This represents good news for the community and for the District as plans are underway to price and issue $25 million in general obligation bonds in February. This will be the first series of bonds issued under the Measure X, which passed with resounding success by San Bruno voters in November 2018 to modernize school facilities, a key component to the District’s Schools with Tomorrow Inside vision.
Moody’s notes that the rating upgrade is “rooted in management's ability to rapidly turnaround its financial position.” The report from Moody’s further states that “the district's financial position will remain stable given management's prudent fiscal practices and formal reserve policy.” "The rating is an affirmation of the responsible financial decisions we have made over the last few years”, commented Superintendent Dr. Stella Kemp.
The Moody’s upgrade will save the District from having to get another rating and bond insurance. Importantly, higher ratings also equal lower interest rates. Wendy Richard, the District’s Associate Superintendent of Business Services stated, " The higher ratings should translate to taxpayer savings of hundreds of thousands of dollars in the form of reduced interest costs on the District’s bonds."
For more information on the District, please visit our website (https://www.sbpsd.org/).
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Photo Credit: San Bruno CA Patch Archives
Source Credit: Superintendent Kemp - San Bruno CA Park School District
Web Site: http://sbpsd.org
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