BCISD gets higher grade for bond rating
As the Burnet Consolidated Independent School District asks residents to vote on a multimillion-dollar bond in May, Moody’s Investors Service bumped up the district’s general obligation rating to within two steps of the highest possible. Staff photo by Daniel Clifton
Burnet Consolidated Independent School District’s financial health garnered an upgrade to its bond issuer rating by Moody’s Investors Service, moving the district within two steps of the highest rating possible.
Moody’s recently assigned BCISD an issuer rating of Aa2 and concurrently upgraded its general obligation unlimited tax rating from Aa3 to Aa2.
According to Moody’s, ratings in the Aa category — which includes BCISD’s Aa2 rating — are “judged to be of high quality and are subject to very low credit risk.”
“The upgrade in rating from Moody’s is another indication of the outstanding financial management and proactive planning on behalf of the board and administration,” BCISD Superintendent Keith McBurnett stated in a news release. “Especially with a pending bond election, it is good to have assurance from an outside, third party that the district’s financial position continues to be strong.”
Moody’s is a leading international provider of credit ratings, research, and risk analysis of institutions, corporations, businesses, and organizations. It reviews a number of data sets when determining and upgrading a rating. Ratings assigned by Moody’s are “forward-looking opinions of the relative credit risks of financial obligations issued” by those entities.
Ratings are from C to Aaa, with C being the lowest and Aaa being the highest.
McBurnett added that the Aa2 issuer rating reflects the district’s healthy financial position, favorable resident income and wealth indices, and stable district enrollment numbers.
On May 1, BCISD voters will cast their ballots in a $52 million bond election. The package is broken down into four propositions targeting different needs of the district. Visit the BCISD 2021 bond webpage for more information on the different propositions.