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Milford earns AA2 bond rating from Moody's

Posted on: January 28, 2022
Moody's

The Milford Exempted Village School District has maintained its Aa2 bond rating (very high grade credit, very low credit risk) Moody’s Investor Services announced this week.

Moody’s also maintained the district’s Aa2 issuer rating and the Aa2 ratings assigned to previously issued general obligation unlimited tax bonds.

“The district has sound economic fundamentals including above-average resident incomes, positive tax base valuation trends, and stable student enrollment,” the report notes. “These credit strengths help to balance the district's exposure to two underfunded state cost-sharing pension plans along with its moderate debt burden.”

Milford is set to issue bonds for sale on the open market on Feb. 2 to finance the construction of a new 6-8 middle school building. Voters approved this bond issue in November 2021. The district sells bonds to investors, then uses the proceeds of the sale to finance construction, then pays back investors over a set period of time. In the case of the November 2021 bond, that time period is 30 years.

“We are very pleased to maintain the district’s strong credit rating,” said Treasurer Brian Rabe. “This means a significant savings in interest on our facility financing. Our recent presentation to the ratings agency was key to assure them that we have strong fiscal management and a solid plan for district operations and for educating students."