News

Lincoln-Way School District 210 improves credit rating

The district also recently restructured finances to reduce outstanding debt

Lincoln-Way Community High School District 210 announced last week it received a credit upgrade from Moody’s Investors Services.

Moody’s upgraded the district’s rating from Baa1 to A2, according to a news release. The district said the upgrade reflects its Board of Education’s and administration’s work to improve its financial health.

A restructuring of more than $130 million in bond debt will ultimately help district taxpayers, as the district continues to recover from a borrowing binge that put it on the state’s financial watch list.

Moody’s said in the report, “The upgrade of the issuer rating to A2 reflects the district’s improved financial position combined with execution of a debt refunding that significantly reduces debt service costs to make them relatively level over the next several years from what had previously been a rapidly escalating schedule.”

The district said the upgrade came as a result of the restructuring of its debt.

In January, the board accepted a bid from J.P. Morgan to lock in a fixed interest rate of 1.76%, which will ultimately reduce the district’s remaining outstanding debt by $21.7 million.

The specific portion of taxes collected each year to pay off the debt will flatten out in 2024 and will be paid off in 2035, according to a news release.

The district attributed the successful debt restructuring to its A+ credit rating from Standard & Poor’s.

District 210 Superintendent Scott Tingley credited the improvement to initiatives by the School Board and administration.

For on the district’s efforts to improve its financial health, visit lw210.org.