North Royalton City Schools Assigned an Aa2 Rating by Moody’s Investor Service
The North Royalton City School District recently completed a credit rating review in preparation for the sale of bonds to finance a new elementary building to replace three existing buildings, renovations to the existing high school and middle school, and to construct a new academic wing onto the high school. Moody’s Investors Service assigned an Aa2 rating to the $88.9 million bonds. The Aa2 rating is two notches below the highest possible rating of Aaa. The district is one of 62 school districts in Ohio sharing the Aa2 rating with 26 district rated higher and 223 districts rated lower.
In a credit opinion released on July 19, 2017, Moody’s Investors Service substantiated the rating by highlighting the following strengths: sizable residential tax base with above average socioeconomic characteristics and strong financial reserves and liquidity. The report also cited positive operating trend is largely a result of stable operating revenue, along with management’s effectiveness in restraining expenditure growth.
District administrators presented to Moody’s rating analysts on July 11. The presentation included the district’s financing plan, financing schedule, district profile, levy structure and tax rates, effective and efficient expenditures, financial status, and credit highlights.
The district will now proceed with the bond sale currently scheduled for July 25, 2017. Residents of the district interested in purchasing the bonds can contact Financial Advisor Associates Katie Carp, of Stifel, Nicolaus & Company, by phone at 440/250-1630 for more information.
Posted: Monday, July 24, 2017