The high credit ratings by Fitch and S&P Global Ratings enable FBISD to borrow money at the lowest possible rates, saving taxpayers money due to lower borrowing costs on the 2018 Bond Program.
“I commend the talented members of our financial team for constantly monitoring and making sure that Fort Bend ISD finances are managed responsibly and prudently, especially during these challenging times,” FBISD Superintendent Dr. Christie Whitbeck said.
The District received its latest excellent ratings after seeking to refinance $158.9 million of 2012 bonds, as well as outstanding commercial paper (short-term unsecured promissory notes), to save money by taking advantage of lower rates and issuing $100 million in new money for the 2018 Bond Program.
In 2018, voters authorized the District to issue up to $992.6 million in debt for the construction of new schools, to correct lifecycle deficiencies on existing facilities, and for new technology. Through March 31, 2022, the District has issued $570.6 million in debt from the 2018 bond authorization.
The upcoming transaction will increase that amount to $791.9 million. Fitch commended FBISD’s fiscal fitness, stating it enables “solid expenditure controls and moderate fixed carrying costs, which assist in maintaining a superior level of fundamental financial flexibility throughout economic cycles.”
S&P also affirmed its AA+ rating on the District’s general obligation debt and its A-1+ short-term rating on the District’s commercial paper notes outstanding with a stable outlook. The rating reflects S&P’s view of the District’s strong policies and practices under S&P’s Financial Management Assessment “supporting the district’s very strong financial position.”