With Groveport Madison Schools’ continued strong financial position, commendable audit results, and generally positive regional economic indicators, Groveport Madison Schools Treasurer Felicia Drummey said she had good reasons for the district to pursue a credit rating upgrade with Moody’s, the major ratings service.
According to information provided by Groveport Madison, Drummey and the district’s investment advisors spent several weeks gathering data, numerous documents, and preparing a presentation to pitch to the Moody’s Investors Service. On July 20, she received the positive news that Moody’s agreed with her argument and they determined it was justified to upgrade the district’s credit rating from A2 to A1 on voted general obligation bonds.
The rating reflects the district’s ability to repay debt and debt-like obligations without consideration of requiring collateral. The upgrade to an A1 rating further reflects the district’s steady bolstering of operating fund balance and liquidity over the past several years, along with its positive economic and tax base trends. The rating incorporates the district’s positive population trends and its moderate overall leverage of unfunded retiree-benefit liabilities and debt, the latter of which may increase in coming years to accommodate the expectation of future enrollment growth.
“We’ve been working very hard to implement strong financial controls and to manage the resources we’ve been provided as efficiently and effectively as possible,” said Drummey.
The district’s credit rating was last upgraded in November 2017 when it increased from A3 to A2.
“When the district’s credit rating is upgraded, it reflects the level of confidence the rating service has in the financial outlook and the management of the operation,” said Drummey. “This results in the district being able to finance bond debt at a lower interest rate, ultimately saving our taxpayers money. It should be seen as great news for the community.”