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Tea Area business manager says S&P raised bond rating to AA-; better rates expected
Summary
The district's business manager reported S&P revised the district's bond rating from A+ to AA-, citing enrollment, development, and healthy fund balance reserves; the board heard that future issuances should have better interest rates.
The Tea Area School District 41-5 business manager told the board that S&P updated the district’s bond rating from A+ to AA- after reviewing local development, student enrollment and fund balance reserves.
The business manager said November is a major month for tax receipts and that S&P had reviewed the district under new criteria; after conversations with Colliers representative Tom Grama and S&P, the district learned the rating change should produce better interest rates on future bond or certificate issuances and increase market value for outstanding issuances.
“No change to current operations was required; this reflects our financial planning and healthy reserves,” the business manager said, noting the district’s fund balance reserves and strategic planning contributed to the rating. The board acknowledged the report with thanks.
