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Strongsville City Schools Retains Aa2 Bond Rating from Moody’s

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Contact:               
Dan Foust, Communications Coordinator
Strongsville City Schools
440.572.7026 / dfoust@scsmustangs.org

 

Strongsville City Schools
Retains Aa2 Bond Rating from Moody’s
District Refinances Remaining Bond Debt to Save $14 Million Over Next 26 Years

Strongsville, OH (September 2, 2020) - Earlier this month, Moody’s Investor Service reaffirmed the Aa2 General Obligation Unlimited Tax (GOULT) rating for Strongsville City Schools and revised the District’s credit outlook to ‘positive.’ As part of Moody’s release detailing the rating and credit outlook, the investor service included the following about Strongsville City Schools: “Strongsville City School District (Aa2 positive) credit profile is well positioned to weather operating challenges presented by the coronavirus pandemic given its strong financial condition. The district also benefits from its solid tax base fundamentals and above average socioeconomic characteristics which contribute to reliable property tax collections, the district's main revenue source.”

This tax rating and revised credit outlook also assisted the District in refinancing the outstanding debt on the $81 million bond issue, approved by the residents of Strongsville in 2012. Over the next 26 years, this refinancing will result in an average savings of $800,000 annually for the District and will reduce Strongsville taxpayers’ investment by .5 mills by 2024, providing an annual savings of approximately $17.50 on a $100,000 house. The District will see a total savings of $14,524,342 over the remaining life of the bond.

Among the major projects funded by the $81 million bond issue were construction of the new Strongsville Middle School, extensive renovations at Strongsville High School, updates for the Early Learning Preschool, and significant upgrades at the District’s elementary buildings, including enhanced WiFi, upgraded HVAC systems, and resurfaced parking lots.

“Financial Prudence is one of our three District’s goals and we have worked diligently to continue to strive for being good stewards of the financial resources our community has provided. Having Moody’s reaffirm our Aa2 rating and revising our credit outlook to ‘positive’ has allowed us to refinance our outstanding bond debt. Much like refinancing the mortgage on your house, this will help our District realize more than $14.5 million in savings for Strongsville City Schools over the next 26 years, and ultimately reduce some of the annual taxes for our community,” said George Anagnostou, Strongsville City Schools Treasurer.

Links to Moody’s Evaluation of Strongsville City Schools:  Rating Action   Credit Opinion

 
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