Moody's Credit Rating
Moody’s Investors Service has upgraded the credit rating of Fife School District, which now has one of the highest credit rating of any school district in the state.
“This is great news for the District and its taxpayers,” said Superintendent Kevin Alfano.
The upgrade was part of an anticipated refinancing of the district’s 2007 bonds, In their recent report, Moody’s notes “The upgrade to Aa2 on the underlying rating reflects the district's improved reserves, healthy local economy, and the important flexibility of being attractive to out-of-district students. The rating also reflects the district's average socioeconomic profile, modest debt profile, and manageable pension liabilities.”
“This is a great reflection of the fiscal responsibility practiced by the District under the leadership of the School Board,” said Alfano.
Fife Public Schools’ student enrollment is growing by 3 percent every year. That’s up to three new classrooms each year. The districts is considering a potential bond measure in 2018 to help plan for the future of Fife schools.
“As the District moves forward with a bond refinancing, the upgrade also benefits the District taxpayers by broadening the base of potential investors and reducing the interest cost on District bonds,” said Kari Harris, Director of Business Services.
While the results of the refinancing will not be known until after the bond sale, which is currently scheduled for June 6, it is anticipated that the interest rate on the District’s outstanding 2007 bonds will be reduced from over 4.50% to under 1.50%.
The new rating of “Aa2” places the District on par with much larger districts around the state.
“There are only seven districts in the state with credit ratings higher than the new Fife School District rating, so we are very proud of this upgrade” notes Harris.