Moody's Blues: Dallas Independent School District's Bond Credit Ratings Slip
Writes Jason Philyaw:
Moody's lowered its rating on DISD's $1.7 billion of debt outstanding to A1 from Aa3, citing "ongoing concerns regarding the reduction in financial flexibility that is a product of structurally unbalanced budgets, as well as the district's financial reporting shortcomings." The agency assigned the A1 rating to the upcoming sale and revised its outlook to stable at the lower rating from negative at the Aa3 rating. Moody's analysts said the downgrade also reflects the district's "substantial future borrowing plans." ...
Standard & Poor's pushed its rating down to A-plus with a negative outlook from AA-minus due to "the district's continued financial deterioration." The lowered ratings also apply to DISD's sale of $105.1 million of general obligation refunding bonds that may price as early as next week. Fitch Ratings assigned a AA-minus rating to the refunding and said the financial profile of the second-largest school system in Texas "has deteriorated due to an unanticipated significant drawdown in reserves in fiscal 2008."