National agencies upgrade Nampa School District’s financial ratings
Two national bond rating agencies March 18, 2016 raised their ratings of the Nampa School District to reflect the district’s significantly improved financial health.
Moody’s Investors Service and Standards & Poor’s Rating Service Friday upgraded the district’s bond rating after meeting with district officials and reviewing the district’s financial reports and progress.
Moody’s upgraded the district’s general obligation rating to A3 from Baa1 with a positive outlook and S&P upgraded its rating to A from A- with a stable outlook.
“I am extremely pleased that both Standard & Poor’s and Moody’s again improved our district’s credit rating. It is the second significant rating increase in one year, which is both unusual and very gratifying,” said Nampa Superintendent David Peterson. “I am most proud of the hard work, focus and discipline from our staff and our Board of Trustees that has so dramatically improved our financial position and direction. I am also thankful for the voters’ support of our supplemental levies, which contributed to the improved ratings.”
Both agencies highlighted the district’s improved management and financial status.
Moody’s in its report Friday said: “The upgrade reflects the continued improvement in financial operations management’s commitment to increase reserves which it has demonstrated over several fiscal years and approval of a sizable increase in its supplemental levy through fiscal 2018.” The rating also incorporates management’s implementation of stronger internal controls and its policy to budget a contingency within expenditures to support continued restoration of reserves to its policy level.”
S&P’s report noted: “The raised rating reflects our view of the district’s track record of positive financial operations, including improved available fund balances and improved financial management policies and procedures. The outlook is stable.”
In August 2012, the district discovered a large deficit and its long-time superintendent resigned. The ratings agencies severely downgraded the district’s bond ratings in light of the crisis. In the nearly four years since, the district administration and its Board of Trustees eliminated the deficit, reduced expenses, increased local investment in teaching and learning, stabilized leadership, and started rebuilding its fund balance.
The Moody's Report is available here.
Information from S&P is available on its website: http://www.standardandpoors.com/en_US/web/guest/ratings/ratings-actions