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Manatee schools' debt ratings upgraded; district to issue COPs to fund two elementary schools
Summary
Fitch and S&P raised ratings for the school district27s debt categories ahead of a planned certificates of participation (COPs) sale to finance construction of two elementary schools. District staff said pricing will occur early March, with closing and proceeds available mid-March.
Business services staff told the School Board of Manatee County on Feb. 25 that Fitch Ratings and S&P Global recently upgraded the district27s debt ratings and the district plans a Certificates of Participation (COP) sale to fund two elementary-school construction projects.
Rachel Sellers, speaking for business services, summarized the upgrades: Fitch upgraded the long-term rating for the district27s 2025A COP series to A+, upgraded the outstanding COPs to A+, and raised the issuer default rating (IDR) and outstanding sales-tax revenue bonds to AA-. The next day S&P Global upgraded the certificates of participation series 2025A to A+ and affirmed the previously upgraded outstanding COPs. “This reflects, like, the board27s trend of stable finances, the economic growth, and our low debt burden,” Sellers told the board.
Staff said COP pricing is scheduled for March 4, with pre-closing March 11 and a final closing on March 13; proceeds will be used to reimburse certain construction expenditures and to finance two elementary projects at Artisan Lakes and Rye Ranch. Sellers said the district completed reimbursement resolutions last May for expenditures that will be reimbursed from the COP issuance. Board members noted that improved ratings generally make it easier to market debt to investors.
Why it matters: Higher credit ratings can reduce borrowing costs and make debt more attractive to buyers, which can affect the district27s capital program and the timing of construction. The board earlier authorized the projects and tonight received the ratings update and sale timeline.
Other finance items: At the meeting the board approved the district27s new external auditor contract (effective July 1) and authorized staff to submit a school-safety grant application to the Florida Department of Education for just under $750,000 to support safety upgrades.
What staff said next: Pricing for the COPs will occur next week and funds are expected to be transferred after the March 13 closing. Staff said they will post details to the district27s bond and finance pages and continue to brief the board.
