DALLAS - Standard & Poor's has lifted its threat to suspending Texas City Independent School District's AA underlying rating after a conference call with school officials.
The May 23 decision to affirm the district's rating with a stable outlook came four days after analysts warned that the district had failed to provide adequate information and that the rating could be suspended and possibly downgraded by June 5.
Texas City ISD said it was blindsided by the May 19 report, which was the result of S&P's routine surveillance. The district had scheduled a meeting with S&P analysts for June 4.
"We did not know that we were in danger of being placed on watch for this," said Melissa Tortorici, director of communications for the district.
Tortorici said that the person who usually responds to S&P requests for information is on medical leave.
The district's financial advisor Ryan O'Hara, managing director for Bosc Inc., said that he was unaware that S&P was seeking updated information because S&P's email was sent to his previous employer.
"We've provided them with all the information," O'Hara said. "They've acknowledge they have everything they need."
Moody's Investors Service last rated the district Aa3 in 2008.
With 5,878 students, Texas City ISD has $114.6 million of outstanding debt or about $19,490 per student, according to the Texas Comptroller's Office. That is third-highest among 10 districts of similar size, according to the Comptroller's data. It's bonds are boosted to Triple-A because of backing from the Texas Permanent School Fund.
The district, which serves the Texas City area on the Gulf Coast, is near completion of $122 million of projects approved by voters in 2007.
