Brighton Area Schools Improves Bond Rating
July 16, 2017
The Brighton Board of Education has been informed that its bond credit rating has improved again, to a rating of A-minus, which is considered “upper medium grade” and "investment quality.”
Assistant Superintendent of Finance Maria Gistinger informed the board Monday that the district’s bond rating is now just six steps from the top, Triple-A, called the “prime rate”. Gistinger told the board that the higher rating gives investors assurance that they will get their investment back, with a good yield.
When Superintendent Greg Gray arrived in 2009, Brighton was in the throes of a huge deficit. However, through a combination of cost-cutting and creating new revenues, the district has been able to not only get out of debt but build a healthy fund balance. In addition, voters passed an $89 million bond issue in 2012 that has resulted in major upgrades to physical facilities and technology hardware and software. Gistinger says a higher bond rating also results in lower costs to the district in arranging to have the bonds issued and sold on the open market.
Last year, the district’s bond rating was triple B-plus “with positive outlook” — also an improvement over the previous year. Triple B-plus is considered the lowest investment grade. (TT)