Moody’s Investors Service raised the general obligation bond rating of the San Mateo-Foster City School District to Aa1 from Aa2, affecting $138 million in outstanding debt.
“The upgrade is driven the district’s very healthy financial position, underscored by a continued trend of healthy and increasing general fund reserve levels, including extremely high levels of cash, a sizable and growing tax base, above-average wealth indices and low debt levels,” Moody’s said in a report released Tuesday.
The higher rating comes ahead of a $43 million, two series GO refunding sale by the district later this month, according to the firm.
Moody’s said the voter-approved, unlimited property pledge securing the bonds also added to the decision to raise the rating.
The district still has challenges, including potential state cuts to education and volatile chances to funding due to a fluctuating tax base and enrollment.
