District achieves AA2 credit rating upgrade and plans bond defeasement

The Texas school district is set to enhance its financial standing following a significant decision made during the Board Meeting on April 14, 2025. The board approved a bond defeasement plan aimed at early debt retirement, which is expected to lower interest carrying costs and increase future bond capacity for facility improvements and projects.

This strategic move comes on the heels of a recent credit rating upgrade from Moody's, which elevated the district's rating from Aa3 to Aa2. This upgrade positions the district among the highest credit quality districts in Texas, reflecting its strong financial performance in both Maintenance and Operations (MNO) and Interest and Sinking (INS) funds.

The bond defeasement will allow the district to manage its debt more effectively, ensuring that it can undertake necessary improvements without needing to raise taxes. The board indicated that the process will commence promptly once the necessary paperwork is signed.

This decision not only strengthens the district's financial health but also sets the stage for future projects that will benefit the community. As the district moves forward with this plan, stakeholders can anticipate a more robust capacity for development and improvements in the coming years.