Moody’s Affirms District’s Aa3 Bond Rating

Moody’s Investors Service announced today that District 200 has maintained its Aa3 bond rating. This is the fourth year of the Aa3 rating, one that reflects the district’s sizeable tax base, moderate debt burden, and previously stable finances with what Moody’s calls an ‘emerging structural imbalance.”

The District applied for the new rating after the Board of Education on March 9 authorized the refinancing of $15.7 million in existing debt to save taxpayers up to $1 million dollars in interest costs. The refinancing does not extend the bond repayment schedule nor does it provide any additional operating revenues. The savings result from being able to borrow the money at a lower interest rate. The Board did a similar refinancing in 2003 that resulted in a savings to taxpayers of approximately $1.8 million.

In announcing the Aa3 rating, Moody’s commented in a press release that District 200 has an affordable debt level and financial reserves that provide an element of flexibility in responding to fiscal pressures the District has encountered in the last several years.

“The continued Aa3 rating provides further evidence that the District is a good manager of taxpayer dollars,” Superintendent Gary T. Catalani said Tuesday.