Dallas ISD has continued to impress the nation’s top investment ratings firms with its strong financial management, which could lead to millions in potential savings in debt financing costs.
Standard & Poor’s Ratings Services (S&P), Moody’s Investors Service and Fitch Ratings collectively cited the district’s strong financial management, conservative budgeting and strong fund balance for this outlook. The ratings are important because it enables Dallas ISD to receive financing at reduced interest rates, saving the district valuable resources when using bonds and other vehicles.
Standard & Poor’s Ratings Services (S&P) has increased Dallas ISD’s underlying debt rate to “AA” from “AA-“ and with a “stable” outlook. The increase was made, according to the firm, due to “the district’s well-embedded financial management practices and policies, which we believe have resulted in its sustained trend of improved finances during the past five years, and we expect this improved level of performance to continue despite potential changes in management.”
Meanwhile, Moody’s Investors Service assigned Dallas ISD a bond rating of Aa1 for the fourth year in a row. Since 2012, Dallas ISD has not received a rating lower than an Aa2. The outlook for the district is “stable” according to Moody’s due to Dallas ISD’s sound financial operations and healthy reserve levels stemming from conservative budgeting and tightened expenditure controls.”
Fitch Ratings mirrored Moody’s recently affirmed the district’s underlying bond rating of AA+, while maintaining the district’s overall rating of “stable.”
Dallas ISD’s fiscal strength continues to improve, including positive assessments by external auditors and a record $330 million in reserve funds. That strength will allow the district this week to issue $75 million in Multi-Modal Limited Maintenance Tax Notes to renovate and improve district facilities.