January 30, 2015
S&P upgrades bond ratings for Nampa School District (click headline for report.)
A national bond rating agency upgraded its evaluation of the Nampa School District reflecting the district’s significantly improved financial performance.
On Jan. 30, Standards & Poor’s (S&P) Ratings Service, upgraded the district’s bond rating from “BBB” to “A-“ and changed its assessment of the district’s outlook to stable.
“This rating change is an affirmation of the hard work and sacrifice of a lot of folks and the Board of Trustees during the past two years to restore stability to the district,” Superintendent David Peterson said. “We are continuing to improve and plan for a brighter future.”
In a news release, S&P credit analyst Sarah Sullivant said: “The rating change reflects our view of the district's significantly improved financial performance in fiscal years 2014 and 2015, aided by revenue from voter-approved supplemental tax levies and state funding increases, coupled with budget projections that indicate at least stable performance in fiscal 2015. The stable outlook reflects our expectation that the district will maintain at least balanced operations and adequate reserve levels in the current fiscal year, 2015, and following fiscal years."
The rating agency report also noted an increase in oversight: “We understand the district board and management have critically examined the causes of the recent financial performance and, with the advice of an external auditor, have strengthened the controls and improved processes regarding building annual budgets.”
The district is recovering from a large deficit discovered in August 2012. In the past two and a half years, the district eliminated the deficit, reduced expenses, and started rebuilding its fund balance.