January 18, 2018
Mt. San Jacinto College officials are pleased to announce that Moody’s Investor Services has upgraded the college district’s general obligation (GO) rating to Aa1, according to a statement released by Moody’s.
“I am thrilled to receive this rating from Moody’s,” said Dr. Roger Schultz, MSJC’s superintendent/president. “This rating shows the fiscal stability of the district and should provide the public with additional evidence that they can be confident we remain responsible fiscal stewards of public funds.”
The upgraded rating means the district will receive better interest rates, therefore saving taxpayer dollars. Moody’s upgraded the rating from a previous Aa2. The Aa1 rating was assigned to the “district's $120 million Election of 2014 GO Bonds, Series B. Post-issuance, the district will have approximately $177.8 million of GO debt outstanding,” Moody’s stated.
Moody’s stated its rationale for the upgrade:
The upgrade to Aa1 reflects the district's improved financial position supported by fiscal prudence and favorable enrollment trends, along with the continued growth of a very sizeable tax base. The Aa1 rating also incorporates the district's average socioeconomic profile, moderate debt burden, and rising but manageable pension and OPEB liabilities.
The Aa1 rating further considers the security of an unlimited property tax pledge of all taxable property within the district boundaries. Riverside County (Aa3 Stable) rather than the district will levy, collect, and disburse the district's property taxes, including the portion constitutionally restricted to pay debt service on GO bonds.