Leander ISD received an upgraded underlying bond rating from Standard and Poor’s (S&P) on Sept. 23, 2016.
LISD was moved from a “AA-” bond rating with a stable outlook to “AA” with a stable outlook.
S&P stated in their press release: “The rating … reflects our view that the district will continue to maintain strong and consistent budgetary performance, which will support its very strong budget reserves and enhance the district’s flexibility to address its growth-related needs or sustain operations if the tax base were to stagnate or decrease significantly.
“At the same time, we expect the district’s strong financial management, supported by its budgeting practices and long-term financial and capital planning, (will) ensure the credit’s stability,” the S&P release added. “For these reasons, we are unlikely to change the rating during our two-year outlook period.”
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.
LISD Chief Financial Officer Lucas Janda said, “The Board’s strong financial practices and policies were cited by S&P as compelling drivers in raising our underlying bond rating.”
Janda explained that the Board’s debt strategy from four years ago 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.
Click here to view the release from S&P.