District 205 Again Wins AA+ Bond Rating from Standard and Poor

Submitted by Elmhurst Community Unit School District 205.

Standard and Poor’s confirmed the District’s “AA+” bond rating with a stable outlook on its general obligation bonds on September 10, 2015.

The District has maintained this bond rating since 2008. Prior to that the District was not rated and purchased “AAA” bond insurance on its bond issues.

The “AA+” bond rating is one notch below the “AAA” bond rating which is the highest possible rating. Standard and Poor’s commented on the District’s strong management of its operating fund balances, low unemployment, strong home values and median income as well as its close proximity to the City of Chicago and the greater metropolitan area.

Areas to monitor include continuing declines in equalized assessed valuation, offset by the fact that new property growth seems to be returning to the area including residential teardowns. Standard and Poor’s gives the District a management score of “Good” which is third on a four point scale.

Factors that could improve the bond rating include increasing the District’s fund balances and increases in equalized assessed valuation. The factors that could negatively impact the bond rating are annual deficits that erode the fund balances.