Credit Rating Agencies give Delta College Outstanding Marks for 2014
Credit rating agencies Moody’s, Standard & Poor’s, and Fitch Ratings have given San Joaquin Delta College outstanding credit ratings for the existing $250 million Measure L General Obligation Bond, passed in 2004. Bond credit ratings are the equivalent of an individual’s credit score and are designed to gauge the risk a bondholder will receive on their investment.
In preparation for the District’s Series 2014C $35 million bond issuance, the District’s controller and financial adviser undertook surveillance credit reviews from the three major ratings agencies. All three agencies affirmed the District’s current excellent bond credit ratings. These credit ratings determine the costs the District will pay to borrow funds, and its ability to retain favorable debt structuring.
Delta College controller, Raquel Puentes-Griffith, emphasizes, “Maintaining strong credit ratings, especially in this slow economic recovery and challenging commercial location, is quite an accomplishment.”
Moody’s assigned Delta an Aa2 rating. The Aa2 rating differs from Moody’s premier Aaa credit ranking by only a small degree. Moody’s also affirmed the Aa2 rating on the District’s currently outstanding General Obligation (GO) Bonds.
Standard & Poor’s has assigned Delta’s Series 2014C General Obligation Bonds an A+ rating and has affirmed its A+ underlying rating on the district’s remaining GO Bonds. The outlook is stable.
Fitch Ratings has assigned Delta’s Series 2014C General Obligation Bonds an AA- rating with a stable outlook. An AA- bond rating is just one step below Prime and considered High Grade.
The budgetary implications for Delta College’s excellent credit ratings are “all positive” according to Puentes-Griffith. “Maintaining the district's strong credit ratings means Delta college's short and long-term borrowing costs will not increase during this next fiscal year.” Puentes-Griffith finishes, “Those lower borrowing costs are great news for our district’s taxpayers.”