A district’s credit rating is an indicator of fiscal health and is taken into consideration when school systems seek loans and refinance debt. Higher credit ratings could result in lower interest rates for loans. Several independent companies provide credit ratings to school systems, including Fitch Ratings, Moody’s, Standard & Poor’s and Kroll Bond Rating Agency.
“You have to have one [a credit rating] as a school district, and it’s imperative that you have a good rating, because that means that you’re being fiduciarily responsible for the funds that the public has bestowed upon you as a fiscal agent,” said Sharie Lewis, director of business services and operations for Parkrose School District in Portland, Oregon.