For immediate release — June 2, 2010
(DALLAS) — The Dallas County Community College District once again is three-for-three. The nation’s top three financial ratings groups — Fitch Ratings, Standard & Poor’s and Moody’s — have awarded “AAA” ratings for DCCCD’s general obligation bonds, series 2010, in the amount of $48.4 million, which will be sold on or about June 8, 2010.
DCCCD also received “AAA” ratings for approximately $403 million in outstanding GO bonds and $14.4 million in outstanding maintenance tax notes.
The district has earned the “AAA” designation for its general obligation bonds — a prime rating not often assigned to community colleges — for a number of years, according to Ed DesPlas, executive vice chancellor for business affairs at the district.
DesPlas said, “Retaining our ‘AAA’ ratings ensures that we are able to acquire capital at the lowest possible cost. Top ratings attest to the financial strength, stability and outlook not only for DCCCD but also for Dallas County and our communities. We all share in this success.”
Fitch’s rationale for awarding the “AAA” rating included these factors:
- DCCCD’s diverse revenue stream and solid operating margins support its favorable financial position.
- Low tuition and tax rates give DCCCD considerable flexibility to raise revenues that offset increased costs associated with expanded facilities as well as declines in state appropriations and property taxes.
- Recent and projected enrollment increases are strong.
- Most students who attend DCCCD come from a limited geographic area (typical of most community colleges), and higher education is competitive in the Dallas/Fort Worth area.
- DCCCD’s financial management is strong, and the district proactively uses long-term planning, conservative budgeting and interim reporting practices.
|
Fitch summarized the rating and said, “Given anticipated enrollment growth and projected declines in state appropriations and taxable values, the maintenance of strong financial operations and reserves consistent with the (DCCCD) board’s current fund balance policy remains crucial to the district’s rating.”
For more information, contact Ann Hatch in the DCCCD office of public and governmental affairs at (214) 378-1819.
# # #
Press contact: Ann Hatch
214-378-1819;
ahatch@dcccd.edu