S&P Global Ratings Raises Cypress School District Bonds to "AA" Rating
Cypress, CA, February 7, 2018
: The Cypress School District announced that S&P Global Ratings has increased the credit rating on its school bonds from "AA-" to "AA" status. "The raised rating reflects our view of the district's significantly improved available fund balances to a level that we consider very strong," said S&P Global Ratings credit analyst Cody Nelson.
"We are pleased that S&P cited our 'good financial management policies and practices' as an important reason for the upgrade to a very high bond rating for our schools," said Lydia Sondhi, Ph.D., president of the Cypress School District Board of Trustees. "Our success in managing expenditures within budget was specifically cited."
The report also cited "additional revenue...in the form of rental income from district-owned property under the management of a local property management company" as a "credit positive." The low level of overall debt and the strong local economy and real estate market were also considerations.
"Since 1996, our school district has benefited from income generated from surplus property. Instead of simply selling property and spending the proceeds, this financially prudent practice acts like an endowment, bringing revenue each year to support our students at no additional cost to taxpayers," explained Tim McLellan, Ed. D., Assistant Superintendent for Business Services.
"District revenue has grown as a result of the property exchanges for the Mackay and Dickerson school sites. This proven practice preserves district assets and benefits our students for decades into the future," McLellan continued.
"I am delighted that one of the world's top rating agencies has recognized the sound financial management and careful stewardship of resources by our Board of Trustees and district administration," remarked Superintendent Anne Silavs.
"Our music and STEM (science, technology, engineering, and mathematics) education programs, as well as the dedicated classroom space on each campus to support them, would have not been possible without such forward-thinking policies and practices. So what is financially prudent also proves to be educationally beneficial for the children of our community," Silavs concluded.
Click here for the full S&P ratings report for Cypress School District's General Obligation Bonds.
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