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Dec 12, 2017 2:58 PMPublication: The Southampton Press

Southampton School District Maintains Moody's Aaa Rating For Seventh Consecutive Year

Dec 12, 2017 2:58 PM

For the seventh year in a row, the Southampton School District has received a Aaa credit rating from Moody’s Investors Service, the highest rating the firm offers, according to a press release from Moody’s.

The rating reduces the cost of borrowing and makes the district’s bonds more attractive to investors—and, according to Jean Mingot, the assistant superintendent for business for the school district, it has already paid off.

The district was in the process of refinancing a bond issued in 2010, having been advised by bond counsel that now is the best time to take advantage of tax breaks. When issued, the $18.1 million bond had an interest rate of 3.6 percent. Bidding took place on Thursday, December 7, Mr. Mingot said, and seven companies competed to refinance the $16.3 million remaining on the bond—and the lowest interest rate that the district was offered was 1.87 percent, about half the existing rate.

Mr. Mingo noted that there are only six districts out of the 354 district in New York State that have earned a Aaa rating.

According to the most recent Moody’s analysis, which came out on December 5, the Aaa rating “reflects the district’s large, wealthy tax base, strong finances and low debt and pension plan.” It also noted that the district was assigned a stable outlook, which “reflects our expectations that the district’s finances and economy will remain strong in the near to medium term.”

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