The Sheboygan Area School District has earned a nearly top-level rating from Moody’s Ratings, an internationally-recognized bond rating firm. A rating classification from Moody’s reflects a business’ financial health and creditworthiness. In the case of the SASD that credit rating was upgraded from Aa2 to Aa1, only one level below the highest-available rank, and describes bonds for the district as “of high quality and subject to very low credit risk.” Only 12 other Wisconsin school districts share the Aa1 or better rating.
Superintendent Dr. Jacob Konrath related Moody’s assessment that the upgrade was driven by a consistently stable financial position supported by strong budgeting practices and relatively low debt, with fund balance and cash ratios consistently above 30%, and he called the move “…great news for our local taxpayers.” He said that the upgraded rating to Aa1 will lead to lower interest rates on bonds and will decrease the amount of taxes levied by the district to finance the middle school projects.
Borrowing for those projects, some $114 million, was approved by referendum in November. The Aa1 rating should mean lower tax impact than initially projected for residents living within the SASD.
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