Standard and Poor's Raises District 202's Credit Rating

PLAINFIELD, IL — The Standard and Poor’s credit agency recently raised District 202’s credit rating and upgraded the district’s financial outlook from “positive” to “stable.”

The upgrades reflect the work done in recent years to improve the district’s finances following a decade of tremendous growth in the late 1990s and early 2000s, followed by the recession that started in 2008, according to a news release from the District.

S&P rates the creditworthiness of public and private companies and governments and governmental entities. The U.S. Securities and Exchange Commission recognizes S&P as one of the country’s top credit rating agencies

“This rating increase is an important confirmation of the hard work our Board, administration and staff have done on behalf of our taxpayers to make sure we could give our students the best services possible and still live within our budget,” said Superintendent of Schools Dr. Lane Abrell in the release.

District 202’s credit rating is now “AA-” – up one step from “A+”. The new rating means that District 202 “…has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree,” according to S&P’s website.

Among other high-water marks, District 202 has posted operating surpluses for three consecutive years, according to S&P’s review. District 202 cut about 345 full-time equivalent teaching, support and administrative positions from 2009-2012 to save about $45 million in annual operating costs.

S&P praised District 202 for its “conservative budgeting and careful planning,” according to its review.

This fiscal approach is especially important since S&P expects continued slow economic growth in the Chicago suburban area, and continuing budget pressure from declining enrollments and state funding cuts.

The rating agency said the district’s rating could rise more if the district increases its reserves – a goal the Board of Education and district administrators have discussed since in recent years.

“We believe that management is doing everything it can to maintain at least balanced operations,” S&P wrote in its review.