Standard and Poor’s raises Hoover Schools debt rating
Published 1:51 pm Thursday, March 25, 2010
The Hoover Board of Education recently received good news from Standard and Poor’s rating service, which raised the board’s debt rating to an AA.
The board’s previous rating was an AA-. The highest rating Standard and Poor’s gives is an AAA.
According to a Standard and Poor’s press release, the company raised the rating to reflect the board’s strong debt service, which results from a 24-mill property tax, as well as the high income levels in the Hoover area.
The release said such strengths could be offset by “the ever-present potential for the state to cut funding to balance budget shortfalls during periods of fiscal uncertainties.” The Hoover board also has a high overall rate of debt per capita, according to the release.
However, Standard and Poor’s expects the Hoover Board of Education’s revenue stream to be able to continue supporting the system’s operations.
Hoover Schools spokesperson Jason Gaston said the rating could help the school system receive better debt rates.
“The benefit to the district in having a strong rating is that, given market conditions, it may result in slightly better interest rates in the event debt is issued,” Gaston said.