NEWS RELEASE
For immediate release: October 3, 2024
For further information contact:
Ryan Brown: Phone: 408-531-6172 | Email: ryan.brown@sjeccd.edu
SJECCD Earns Highest Possible Bond Rating
(San José, Calif.) —Moody’s Investors Service yesterday upgraded the bond rating for San José – Evergreen Community College District (SJECCD) to Aaa, which is the highest rating possible. The district joins a handful of California community college districts that have attained this recognition. These ratings demonstrate that SJECCD provides an excellent education paired with strong student supports through responsible and effective management of its finances.
Bond ratings measure the credit worthiness of a corporate or government institution and are used by investment professionals to assess the likelihood a debt will be repaid. Ratings are assessed on a variety of factors, including the health of an organization’s balance sheet, its debt, and its cash position. In raising the district’s bond rating, Moody’s cited SJECCD’s improvement in its financial profile, balanced operations, and financial resources that are supported by favorable enrollment trends.
“In announcing the bond rating upgrade, Moody’s noted our ‘strong financial position,’ ‘prudent fiscal policies,’ and ‘good governance.’ That all starts with strong fiscal leadership from our board of trustees, which is then infused throughout the organization,” said Dr. Beatriz Chaidez, SJECCD chancellor. “This rating is the culmination of years of hard work from many throughout our District.”
The bond rating is for the district’s two voter-approved bonds: Measure G, a $268 million bond approved by voters in 2010; and Measure X, an $748 million bond approved in 2016. Funding from the bonds is being spent on construction and renovations of facility projects at the District’s colleges: Evergreen Valley College and San José City College.
The District’s previous bond ratings have enabled it to save taxpayers money as the District issues refunded – which is similar to refinanced – Measure G and X general obligation bonds through lower interest rates or other improved market conditions over the life of the outstanding debt on the bonds. It is anticipated that this new, upgraded credit rating will result in additional savings to local taxpayers.