Philadelphia public schools get boost with credit upgrade
PHILADELPHIA (AP) — For the first time since 1977, the Philadelphia School District no longer has a junk-bond credit rating.
The Philadelphia Inquirer reports Moody’s Investors Service boosted the district’s rating two levels on Tuesday, and gave it a stable outlook.
Moody’s spokesman David Jacobson calls the investment-grade rating “very good news.”
The upgrade will enable the district to get financing at lower rates, saving it and taxpayers money.
Moody’s cited local control and the newly appointed school board as main drivers of the improved rating. Moody’s says the promised $547 million in new funds from a property tax hike “largely eliminates the district’s previously projected deficits over the next five years.”
Philadelphia’s improved economy also drove the upgrade; about 40 percent of the district’s revenue comes from the city.
Information from: The Philadelphia Inquirer, http://www.inquirer.com