The Rochester Community School (RCS) District is proud to announce a new long-term credit rating designation of AA with a stable outlook for the remaining sale of the $185 million unlimited-tax general obligation (GO) school bonds.
The AA rating, issued by S&P Global Ratings, is the second highest assessment possible and indicates that obligations are “of high quality with a very low credit risk.” The previous rating for the district was AA- with a positive outlook.
“A good credit rating is important because it demonstrates that we are less of a risk for our investors. This allows us to then borrow money at a lower interest rate,” said Dana Taylor, deputy superintendent of business affairs.
The district’s unlimited-tax GO pledge secures the series 2019 bonds totaling $57 million, which will be sold in April 2019.
The upgrade reflects the district’s consistently positive operating results over the past three years, posting significant general fund surpluses and nearly doubling its available general fund balance. In addition, the district continues to benefit from ongoing growth and opportunities in the very diverse Oakland County economy.
“The Board of Education’s commitment to address the district’s financial needs was a major contributing factor to the improved rating,” said Taylor. “It is truly a privilege to work with a leadership team who is willing to make the tough decisions to ensure the district’s financial success.”
On Dec. 7, 2015, the Board of Education authorized the sale of bonds. The district offered $128 million in bonds in January 2016. A second series of bonds totaling $57 million is scheduled to be sold in April 2019. The bond projects focus on developing and enhancing assets, to include state-of-the-art technology and facilities, and improve student safety and school security.
“As we move forward, every action will continue to be deliberate, strategic, and focused on safety and efficiencies throughout the entire RCS organization. Being good stewards of bond dollars is both an expectation and obligation to our community,” said Superintendent Robert Shaner, Ph.D.
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