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Eastport South Manor wins S&P upgrade; district says it will lower borrowing costs for planned capital projects
Summary
The district’s business office announced S&P Global upgraded Eastport South Manor’s rating from double A-minus to double A with a stable outlook. Officials said the upgrade will reduce interest costs as the district prepares roughly $70 million in borrowing for capital projects and that the district expects measurable interest savings over the next decade.
Eastport South Manor Central School District officials announced that S&P Global upgraded the district’s municipal bond rating from double A-minus to double A with a stable outlook, a change the business office said will lower borrowing costs as the district moves forward with major capital borrowing.
The announcement was delivered at the board meeting on May 7 by the district’s assistant superintendent for business, Tim Laube, who reviewed the district’s credit history and said the rating move follows several years of fiscal recovery since a 2018 downgrade. Laube told the board that the district had previously lost two notches in 2018, received removal of a negative outlook, and most recently earned the single-notch upgrade to double A with a stable outlook after in-person reviews and follow-up with S&P.
The upgrade comes as the district prepares to borrow for capital work. Laube said the district plans approximately $70 million in borrowing tied to a multi-part capital program, including a $55 million bond issuance planned this month and additional borrowings next year. He said the rating improvement will reduce interest costs and estimated the district “stands to save hundreds of thousands of dollars over the next 10 years” because of the higher credit rating.
Laube credited steady budgets, facilities investments and administrative stability for the change; he also noted the district’s financial adviser, MuniStat, supported the district during presentations to rating analysts. Board members thanked Laube and the business office for the work required to secure the upgrade.
Next steps: the district is proceeding with its planned bond sale; specific final interest rates, official statements and sale dates will be set in the coming weeks as the borrowing moves to market.
