Berkeley County Schools’ New Credit Ratings Could Save Taxpayers Millions
March 24, 2015
MONCKS CORNER, SC – Berkeley County School District potentially will save taxpayers millions of dollars as a result of Standard & Poor’s Ratings Services upgrading the district’s credit ratings. The better the credit rating assigned by Standard & Poor’s Services, the lower the interest rate for the district, directly passing on those savings to taxpayers in Berkeley County.
Berkeley County School District Superintendent, Dr. Rodney Thompson said, “The rating upgrade adds value from an investor’s perspective, meaning more bidders on future bonds. This also pleases current investors because they are now holding bonds that are more valuable.”
Standard & Poor’s raised its rating of Berkeley County School District’s credit program one level, from ‘AA-‘ to ‘AA’. The company also raised its long-term rating on the district’s appropriation debt from ‘A+’ to ‘AA-‘. These ratings dictate the interest rates the district is assigned.
The upgrade reflects Standard & Poor’s opinion of Berkeley County School District’s continued economic growth and strong financial profile and performance. The company’s summary reported that the district has shown the ability to produce positive operations, which led to an overall increase in reserves through continued growth within the district, coupled with the maintenance of a moderate debt profile.
Standard & Poor’s affirmed its ‘AA’ long-term rating, with a stable outlook. The stable outlook reflects Standard & Poor’s opinion of the district’s strong economic fundamentals and financial performance. The company believes the district’s diverse and growing economy, with access to the greater Charleston metropolitan area, provides rating stability.
Chief Finance Officer for Berkeley County School District, Brantley Thomas said, “This was a team effort between the Berkeley County Board of Education and the school district. The rating upgrade is a very positive reflection of the school district’s commitment to fiscal responsibility and it shows our focus on maintaining good fiscal policy. The upgrades mean huge savings for taxpayers.”
Standard & Poor’s Financial Services is a financial services company and is a division of McGraw Hill Financial. The company provides market intelligence in the form of credit ratings, research and thought leadership.
