Tom Tolen / news@whmi.com

According to the top two bond rating agencies, the rating of the Brighton Area Schools has improved once again.

Brighton Assistant Superintendent of Finance David Jones told the Board of Education at its meeting last week that Brighton’s bond rating has gone up again — this time from “A" to “A+”. The A+ rating is given by S&P Global, whereas the equivalent rating by Moody’s Investment Service is A1.

In Jones’s words, “It’s based on the financial strength of the district.” He indicates it will result in a better interest rate when the district borrows in the future. 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.

In the words of Standard & Poors Global Ratings Credit Analyst Mona Elfar, “The upgrade reflects our view of Brighton Area Schools’ consistent positive fiscal performance and maintenance of strong reserves.” She indicated the high rating gives investors assurance that they will get their investment back, with a good yield.

In a recent article, S&P Global said, “The stable outlook reflects our view of Brighton maintaining its strong financial position through management’s cautious budgeting approach and the district’s consistent enrollment growth.”

The top rating by S&P is triple-A, which is referred to as the “prime rate”.

The district’s bond rating has been on an upward trajectory ever since it got out of debt as a “deficit district” in 2015. In 2016, Brighton’s bond rating rose to triple B-plus, followed by an upgrade to A-minus in 2017 that was succeeded by another step up to an A.

The district’s steady increase in its fund balance is also a factor in the bond rating upgrade. Brighton went from an $8.5 million deficit in 2010-11 to a $16.2 million fund balance by the end of the 22-23 fiscal year. In a rosy audit report last November, auditors also said the district’s long-term liabilities are down $16 million and the district has continued to decrease its outstanding bonded indebtedness.