By Janine Davis Record Staff Writer The Warren County R-III School District was notified last week that its bond rating has been upgraded to “AA” from “AA-” as a result of its strong financial health and related financial management practices. Nationally recognized statistical rating organization (NRSRO) Fitch Ratings released its rating outlook June 26 for the district’s outstanding $10 million General Obligation Bonds, Series 2006. The bonds also benefit from participation in the Missouri School District Direct Deposit Program, which Fitch rates as “AA+.” These bonds are part of the $18 million that were approved by voters and issued in 2006 to fund construction of Warrior Ridge Elementary School, additional classrooms at the high school, and additional classrooms and cafeteria at Rebecca Boone Elementary School. The remaining $8 million of these bonds were refinanced in 2010, which saved the district $1,023,020 in future interest expense. Along with Moody’s and Standard & Poor’s, Fitch Ratings are considered one of the financial industry “Big Three” credit rating agencies designated by the U.S. Securities and Exchange Commission. R-III Superintendent Dr. Jim Chandler said he is pleased that Fitch Ratings acknowledged the district’s financial strength. “The administration and board of education work hard to be good stewards of our taxpayer money while providing quality education to all students,” said Chandler. “It’s nice to have a financial rating firm reinforce the positive activity within Warren County.” Ultimately, said R-III financial director Tony Chance, the higher rating makes the school’s bond offerings more attractive to investors. The process for the rating involves a review of the district’s audited financial statements and budgets, evaluation of management practices and procedures, and an analysis of overall trends in the local economy. Chance, along with Tom Pisarkiewicz, vice president of L.J. Hart & Company, R-III’s municipal bond underwriter, participated in the rating conference call on June 5. “We were happy with the overall tone of the discussion with Fitch, and are delighted with this upgrade because it will potentially help expand the secondary bond market for future financings resulting in lower interest rates,” stated Chance. The Fitch Publishing Company began as a publisher of financial statistics. In 1924, the Fitch Publishing Company first introduced the now familiar “AAA” to “D” ratings scale to meet the growing demand for independent analysis of financial securities.
Strong financial health leads to upgrade in R-III's bond rating
