Saline Area Schools' credit rating upgraded ahead of bond sale
Saline Area Schools received some good news as the S&P Global Ratings announced on February 7 that it has raised the school district’s underlying rating.
The SAS Board of Education with some help from PFM Financial Advisors took this news back to the community. The school board announced it’s pleased to report that S&P Global Ratings has upgraded the district’s credit rating from “A” to “A+”.
“Standard & Poor’s cited Saline’s improved general fund reserve position along with its large and growing tax base and the community’s access to diverse job opportunities, as reasons for the rating upgrade,” the Saline school board said in its announcement. “The improved credit rating was assigned as the District prepares for the sale of the first series of bonds recently approved by voters.”
SAS said funds raised by the sale of bonds will be used for improvements throughout the District over the next decade. Projects will include school building upgrades, a new transportation facility, furnishings, technology and bus replacements and improvements to athletic facilities, playfields and playgrounds.
In the school district’s announcement, Superintendent Steve Laatsch again thanked the community on approving the bond measure.
“Much of the important work of the bond program will enhance and preserve our facilities for many years to come,” Laatsch said. “In addition to protecting our world class facilities, the bond program will also support critical student needs at all levels.”
SAS said in its Feb. 8 announcement that the first phase of the $180 million improvement project will tap $60 million of bonds expected to be sold next week.
According to the school district, the rating upgrade has the potential of shaving hundreds of thousands of dollars in interest cost for district taxpayers.
The school district is advised by PFM Financial Advisors in Ann Arbor. The bonds will be offered to investors by J.P. Morgan Securities and Stifel Nicolaus.