Cherokee School District's Credit Rating Improves

CANTON, GA — The Cherokee County School District said its credit rating has improved for a second consecutive year, a development it's touting as an "accomplishment benefiting taxpayers."

CCSD's already positive Aa2 and Aa- levels, as rated by Moody’s and Standard & Poor’s financial service companies, were upgraded this week to Aa2 Stable and Aa… the latter jumping up a step to put the organization closer to achieving the top AAA rating.

“We continue to make steady progress toward a perfect rating, and, along the way, the improvements are benefitting our community, as an improved credit rating lowers costs for insurance and borrowing,” Superintendent of Schools Dr. Brian Hightower said. “Continuous improvements by our Office of Financial Management led by Chief Financial Officer Kenneth Owen are contributing to our success, as are our improving local and State economy.”

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Standard & Poor upgraded its rating to Aa, with a Stable outlook, from Aa- to reflect its positive “view of the district’s improved financial performance and strengthened reserve position since fiscal 2014, a stable and strengthening economy that has produced significant tax digest growth in recent years” and CCSD’s enhanced financial management practices.

Moody’s, which increased its rating to Aa2 from Aa3 last year, has added a Stable outlook to its opinion, and foresees a rating upgrade should the district continue its balanced budgets, sound reserve levels and further reduction of long-term liabilities.

“The District’s financial position has improved significantly since fiscal 2015 and healthy operating trends are expected to continue due to tax base growth, multi-year planning, monthly financial reporting and management’s commitment to maintaining sound reserves levels, demonstrated by the recent adoption of a formal fund balance policy," the agency reported.

Owen and his staff currently are at work on creating the district's first Comprehensive Annual Financial Report, which will provide an additional layer of financial transparency and accountability that uses national governmental accounting standards and is audited by an external CPA.

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