Bond Rating Rises For Newark Schools: ‘Shot In Arm,’ Official Says

NEWARK, NJ — The Newark Public School District has seen some criticism over controversial spending in recent weeks. But on Friday, administrators had some more positive financial news to announce – the district’s bond rating has gone up.

S&P Global Ratings recently raised its long-term rating from BBB+ to A- for the Newark Board of Education’s general obligation bonds and removed it from “under criteria observation.” The outlook is now “stable,” the agency reported on Dec. 6.

S&P Global Ratings credit analyst Victor Medeiros said the new outlook “reflects the district's recent operating performance and improved liquidity and reserve position,” as well as “stable economic and state funding environments.”

In its report of the upgrade, S & P Global Ratings noted that it comes amid significant economic challenges in the Newark community and factors beyond the control of the school district or its board of education.

One of these hurdles? Aging infrastructure: the average age of the district’s school buildings is nearly 84 years.

“Despite these challenges,” the report said, “the district’s finances have improved over the past few years, and it maintains robust budget monitoring procedures that have supported operational balance.”

Superintendent Roger León said the improved rating is a “huge shot in the arm” for the district, which will ensure better funding terms for major capital projects – and help ease the burden on local taxpayers.

• See Related: Newark School Budget Passes With Tax Hike: Aid, Election, Inflation

Send local news tips and correction requests to eric.kiefer@patch.com. Learn more about advertising on Patch here. Find out how to post announcements or events to your local Patch site. Don’t forget to visit the Patch Newark Facebook page.