Ratings agency Standard & Poor’s (S&P) affirmed Leander ISD’s high-quality bond rating in preparation for upcoming new money sales resulting from the 2017 bond election approved by the LISD community.
S&P assigned its “AAA” long-term rating and “AA” underlying rating for credit program to LISD’s series 2018A unlimited-tax refunding bonds. At the same time, S&P affirmed its “AA” rating on the district’s outstanding general obligation debt. The outlook on all ratings is stable.
“The underlying rating reflects our opinion of the district’s favorable location in the broad and diverse Austin metropolitan area, coupled with very strong income level,” S&P said in a press release. “The rating also reflects our view that the district will continue to maintain very strong budget reserves supported by strong budgetary performance.”
Rating agencies are utilized by entities periodically when a debt transaction is being pursued. LISD utilizes the services of S&P, and their key purpose is to issue a rating consistent with the financial position/outlook of the school district.
“Leander ISD’s strong financial management was recognized by Standard & Poor’s in September 2016 when they upgraded the district to ‘AA,’” LISD Chief Financial Officer Lucas Janda said. Janda explained that the LISD Board’s debt strategy has resulted in a higher bond rating, which will result in less interest being paid on future debt.
For more information, please visit LISD’s Financial Transparency page.