Moody's Investor Service upgrades bond rating for LCSD
Moody’s Investor Service, a credit rating
agency which provides research/analysis to commercial and government
entities, has assigned the Liberty Central School District an A1
bond rating, upgraded from an A2 rating. This rating applies to $4.8
million in outstanding general obligation debt, and reflects the
districts strong history of financial operations.
An A1 rating signifies the credit quality of the district is
considered upper-medium grate with low credit risk. “The rating
increase affirms that our fiscally conservative, proactive approach
to budget management is working,” said Michael B. Vanyo,
Superintendent for the Liberty Central School District.
According to Moody’s report on the district, the rating company
believes that Liberty’s financial operations will remain
satisfactory given solid reserve levels recorded in recent years and
the district’s commitment to maintaining strong, conservative budget
practices. Despite a significant reliance on state aid (43.5% of
2009 revenues), Moody’s considers the district is well-positioned to
weather potential future delays or cuts in state aid.
Moody’s also cited the District’s low debt burden, or the low amount
of debt the District has outstanding, as a credit strength, even
when including the debt issued for the District’s Phase 1 building
project. In addition, Moody’s stated that the district’s debt has
historically been rapidly repaid, with 88% of outstanding principal
currently scheduled to be repaid within 10 years.
“It is rewarding to see the positive results of the districts’
long-range planning,” said Liberty Central School District Business
Manager Lorine Lamerand. “The collaboration and dedication of the
Board of Education, Superintendent Vanyo and the business office
makes good planning possible.”
