Fitch Ratings last week upgraded by one notch to AA-plus its rating on the Missouri School District Direct Deposit Program.
“The upgrade reflects the strong structural, legal, and administrative protections of the direct deposit program,” Fitch wrote. The program’s structure provides for full and timely payment of debt service from state aid payments.
Participating districts must demonstrate 1.5 times coverage of maximum annual debt service by allocated state aid, both in the year of issuance and in the two prior fiscal years. Fitch rates Missouri’s general obligation credit AAA.