Leander Independent School District Secures Upgraded Bond Rating

LEANDER, TX -- School district officials are crediting their practices and policies to an upgraded bond rating.

In a recent news advisory, LISD officials said the upgrade of its underlying bond rating by Standard & Poor's to an AA rating reflects a stable outlook by analysts at the ratings house.

“The rating … reflects our view that the district will continue to maintain strong and consistent budgetary performance, which will support its very strong budget reserves and enhance the district's flexibility to address its growth-related needs or sustain operations if the tax base were to stagnate or decrease significantly," analysts wrote in their summation.

Standard & Poor's added: “At the same time, we expect the district's strong financial management, supported by its budgeting practices and long-term financial and capital planning, (will) ensure the credit's stability. “For these reasons, we are unlikely to change the rating during our two-year outlook period.”

An entity's bond rating is crucial in pursuing a financial transaction, with a strong rating ensuring more favorable rates in borrowing.

In reaction to the upgrade, LISD's CFO, Lucas Janda, said the school board's debt strategy from four years ago resulted in a higher bond rating, which will result in less interest being paid on future debt.

For more information, visit LISD’s Financial Transparency page.

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