Moody’s Investors Service has upgraded Valley View Community Unit School District 365U’s issuer, general obligation unlimited tax (GOULT) and general obligation limited tax (GOLT) ratings to Aa1 from Aa2.

“Even with the challenges of current adverse economic conditions, VVSD was able to increase its’ bond rating to a Aa1, putting the district one notch away from the highest possible rating of Aaa,” said VVSD Board of Education President Steve Quigley.  “This is important to all our community stakeholders because having a higher bond rating means paying lower interest, which in turn allows the district to put more dollars into our classrooms for the benefit of our learners.”

To put VVSD’s upgraded rating into context, of the over 3,300 K-12 school districts Moody’s rates across the entire United States, fewer than 100 school districts have a higher rating than VVSD. 

Moody’s has also assigned a Aa1 rating to VVSD’s Taxable General Obligation Refunding School Bonds, Series 2023 with a proposed par amount of $16.2 million. Following the sale, VVSD will have approximately $260 million in debt outstanding, inclusive of previously accreted interest on the District’s capital appreciation bonds.

The upgrade of the issuer rating to Aa1 reflects VVSD’s strengthening reserves supported by well-managed financial operations along with growing revenue. Additionally, the District’s long-term liabilities and adjusted fixed costs are expected to decline considerably with the maturity of outstanding capital appreciation bonds over the next several years.

“The upgrade in VVSD bond rating by Moody’s also reaffirms from an independent source that the District is managing its’ finances well and serving as good stewards of financial resources provided by taxpayers,” added VVSD Asst. Superintendent for Administrative Services John Reiniche.