The San Mateo County Community College District recently completed refinancing $113.2 million in general obligation bonds, saving local taxpayers more than $16.4 million in long term debt costs over the next 15 years.
As part of this refinancing, the District received an upgrade in its credit rating from Standard and Poor’s and the highest rating possible from Moody’s Investors Ratings Service.
With ratings of AA+ from S&P and Aaa from Moody’s, the District is now the highest-rated community college district in the State of California.
In assigning the rating, Moody’s cited the District’s “healthy and stable” finances during a time of revenue challenges from state funding and its low debt burden of 2.2% as factors leading to the enhanced rating.
Standard and Poor’s pointed to the District’s “good financial policies and practices” and “strong reserve levels” in making their recommendation.
These ratings contributed to the District being able to reduce the average interest cost on the general obligation bonds that were refinanced from 5.03% to 2.10%, which produced the significant savings for taxpayers.