The district maintained its bond credit rating issued by Moody's Investor Service, despite the economic downturn due to the coronavirus pandemic.
The district maintained its Aa2 rating on some bonds and Aa3 rating on another. Similar to a personal credit score, credit ratings determine borrowing costs and the amount of interest paid on issued debt. Credit ratings play a critical role in determining how much companies and government entities that issue debt have to pay to access credit markets. In a school district review, a rating agency will establish an underlying credit rating (like your personal credit score) and also assign an outlook based on whether they perceive financial conditions to be getting better or worse. According to Moody's, the outlook is stable.
"The Aa2 issuer rating reflects the district's regionally important economy, which includes all of the City of Cincinnati and portions of its suburbs. Although cash and fund balance will likely decline over the next two fiscal years, reserves are currently strong and the declines are driven by the strategic investments in the district's programs and offerings. Also, the district stands to significantly gain from the recent federal relief bill, which will likely more than offset the forecast declines. Enrollment fell in fiscal 2021, reversing several consecutive years of growth," according to Moody’s review.
"We are pleased with the outcome of our credit rating and the acknowledgement of sound budget management," said Treasurer/ Chief Financial Officer Jennifer M. Wagner. "We strive to be excellent stewards of the revenues we receive from our taxpayers and are very appreciative of their generous support."