FOR RELEASE:
May 1, 2003
INFORMATION:
Marisa Spatafore
650.949.6107; spataforemarisa@fhda.edu
FOOTHILL-DE ANZA RECEIVES OUTSTANDING BOND RATINGS
AA-, A1 for Refinancing of Certificates of Participation
LOS ALTOS HILLS – The Foothill-De Anza Community College District has received exceptional bond ratings from both Moody’s and Standard & Poor’s as it prepares to refinance a 1993 series of certificates of participation. The district retained its A1 rating from Moody’s and garnered a rating of AA- from S&P, the district’s highest rating ever from that agency.
The S&P rating is also particularly noteworthy in that COPs ratings are generally two levels below those for general obligation bonds, which would have been an A+ for the district.
According to the S&P report, a key factor in the credit quality rating is the district’s “strong management team, with a demonstrated ability to maintain a healthy financial position…The stable outlook reflects an expectation that…district management will continue its strong financial performance.” The report cited the district’s reaction to current budget cuts.
Moody’s report noted Foothill-De Anza’s “healthy financial operations…. healthy reserves and inherent operational flexibility.” The report went on to state that the agency “expects the district to fare better through current financial difficulties posed by the economy and the state’s own budget challenges, relative to other districts.”
“During this time of fiscal uncertainty, it is particularly gratifying to receive these excellent ratings,” said Interim Chancellor Lois A. Callahan. “We are proud of the job we have done as a district in this challenging economic climate and during the ongoing difficult process of addressing budget cuts from the state.”
The district’s refinancing of the COPs will take advantage of lower market rates, resulting in a cost savings of about four percent net present value for the district without extending the term of the debt.
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