TOMBALL - For its continued focus on financial stability and its robust financial position, Tomball ISD has once again earned high financial ratings of AA+ by S&P and Aa1 by Moody’s, announced by the rating agencies on Tuesday, Sept. 29.
Standard & Poor (S&P) Global Ratings and Moody’s Investor Services provided ratings that are important prior to the sale of bonds on the open market. Both rating agencies use rating rationale for a credit overview that focuses on the local economy, finances of the district driven by property values, average daily attendance, a financial management assessment, and a review of the overall net debt of the district.
S&P affirmed Tomball ISD’s ‘AA+’ underlying rating with an outlook on all ratings of stable. Moody’s affirmed the ‘Aa1’ rating with a stable outlook.
“It is extremely important for Tomball ISD to maintain these high financial ratings because our District is growing rapidly and the need to sell bonds is ongoing,” TISD Chief Financial Officer Jim Ross said. “These high ratings result in interest expense savings which is millions saved over the life of bonds sold.”
Tomball ISD joins a short list of Texas school districts to earn such high ratings by both services. In the State of Texas, there are 1,246 public and charter schools that can sell bonds and are subject to financial rating reviews. Of those, only 23 districts are ranked as high as Tomball ISD with S&P and only 16 districts are ranked as high as Tomball ISD with Moody’s.
It was indicated in the reports that “high reserves and liquidity provide a cushion to weather any unforeseen financial obstacles, such as responding to the pandemic.” It was also stated in the reports that the rating “reflects the expectation that solid financial practices will continue to govern fiscal management, allowing reserves to remain favorable.”
ABOUT TOMBALL INDEPENDENT SCHOOL DISTRICT
Tomball ISD educates students to become responsible, productive citizens by providing innovative, individually rigorous, and personally valuable educational experiences. Founded in 1908, Tomball ISD now encompasses 83 square miles in northwest Harris County and southwest Montgomery County, and is located approximately 30 miles from downtown Houston. The district currently educates over 18,500 students at 21 campuses.