BEAVERCREEK — Beavercreek City Schools leaders recently learned that the district’s credit ratings rank among the highest of any school district in the state.
In late spring, a team of district officials made presentations to Moody’s Investors Service, one of the nation’s leading independent credit rating agencies. Moody’s evaluated the financial health of the District and the performance of its leadership, along with local and regional growth indicators, and affirmed Beavercreek City Schools’ Aa1 rating.
An Aa1 rating is considered the highest of the ratings in the “high quality” category, and is just one step below the highest possible rating on the company’s scale (see attached graphic). Moody’s rates bonds on a scale ranging from “Aaa” to “C.”
The “Aa1” rating issued indicates that Moody’s considers Beavercreek Schools to be in a sound financial position thanks to prudent management, and believes that its debt represents a relatively low risk to investors. This, in turn, translates to lower interest rates. Such ratings help the District issue more attractive bonds when funds are needed.
High quality bond ratings also eliminate the need for bond insurance. As a result, Beavercreek City Schools did not need to purchase such insurance, which saved the District and its taxpayers more than $500,000.
Moody’s cited the district’s “sound financial position and prudent operating reserves, along with its large and diverse tax base, moderate growth, and manageable debt profile, as reasons for supporting the Aa1 rating.” Only five of the 613 school districts in Ohio have earned a better credit rating from Moody’s.