Moody’s awards top ratings to District 51

Moody’s awards top ratings to District 51
Posted on 12/06/2018
moodys scale

Grand Junction, CO – Moody's Investors Service maintains a rating of Aa3 for Mesa County Valley School District 51’s general obligation unlimited tax (GOULT) debt and has assigned an A1 rating for its certificates of participation (COPs).

The higher the rating, the lower the risk for investors. District 51’s ratings are two of the highest an organization can earn from Moody’s Investors Service. The investment grade scale starts at the top with Aaa, then Aa1-3, then A1-3, and Baa1-3.

A long-term obligation rating of Aa3 is considered “high quality” and “very low credit risk” for investors. A rating of A1 is considered “upper medium” quality and a “low credit risk.”

Moody’s Investors Service determined the ratings for District 51 based on numerous factors, including the district’s stable financial position, large tax base (the district encompasses the majority of Mesa County), stable student enrollment, and last year’s successful mill levy override vote. Moody’s also took into account the district’s high fixed costs driven by the statewide pension plan requiring that districts increase contributions to the pension plan, though recent pension reform should improve circumstances.

Moody’s is a trusted and integral part of the global economy and provides credit ratings and research information about debt instruments and securities. Learn more at www.moodys.com.

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