Moody’s upgrades Vestavia Hills City Schools credit rating

February 24, 2017

FOR IMMEDIATE RELEASE

VESTAVIA HILLS CITY SCHOOLS

February 23, 2017

Moody’s upgrades Vestavia Hills City Schools credit rating

Citing stable outlook, school system now carries prestigious “Aaa” rating

 

VESTAVIA HILLS, Ala. — Credit rating agency Moody’s announced last week that it had upgraded the rating of the Vestavia Hills Board of Education.

 

Vestavia Hills City Schools now holds an “Aaa” rating, which is the highest rating awarded by Moody’s. The school system was awarded an initial Moody’s rating of “Aa1” in the summer of 2016 and an “AA” rating from Standard & Poor’s. At the time of the initial ratings, financial advisers said Vestavia Hills City Schools had achieved the strongest combined credit rating of any school system in the state.

 

The upgrade “reflects the district’s available taxing headroom” along with other factors which ensure “sufficient revenue capacity to pay debt service,” according to a press release from Moody’s. The annual revenue pledged for payment of the school system’s bonds is four times greater than the amount of its debt service, VHCS Chief Financial Officer Greg Maner said Tuesday.

 

The credit upgrade follows a decision earlier this month by Moody’s to upgrade the City of Vestavia Hills from “Aa1” to “Aaa.” Moody’s cited the city’s stable financial outlook as the rationale for an upgrade.

 

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Vestavia Hills City Schools | Learning Without Limits

1204 Montgomery Highway, Vestavia Hills, AL 35216

www.vestavia.k12.al.us

 

Media Contact: Whit McGhee

VHCS Public Relations Office

205-402-5144 | mcgheejw@vestavia.k12.al.us