Moody’s Investors Service has affirmed the A2 rating on $16.5 million of the Mendon-Upton Regional School District’s (MA) general obligation bonds and removed the negative outlook. This is due to the stabilized finances and the expectation that the trend will continue.
“This news is certainly positive and it represents a third-party, external validation of the district’s progress in improving its finances,” said the district’s superintendent, Dr. Maruszczak. “While we are pleased at this time, we realize we still have much work ahead within the district. For FY15 and beyond we will continue to work collaboratively with officials and boards from Mendon and Upton to craft responsible budgets while also improving our educations programming,” said Dr. Maruszczak.
What does this mean, the A2 rating reflects the district’s improved albeit limited financial reserves, moderately sized tax base, and manageable debt burden. The removal of the negative outlook reflects the expectation that the district’s finances have stabilized and will continue to improve over the near term.
What could change the rating up?
- sustained improved the district’s financial position through an established trend of structurally balanced operations
- material improvements to the district’s base and wealth demographics consistent with higher rating categories
- significantly increased financial flexibility and reserve levels in step with budgetary growth
What could change the rating down?
- failure to maintain structurally balanced operations
- deterioration of operating reserves
To view the full Moody’s Report go here moodys.
UPTON DAILY 