Hutto ISD Receives Credit Rating Upgrade from Moody's
April 21, 2021
In preparation of UL Bond Refunding Series 2021A and 2021B, Hutto ISD was recently
awarded a credit rating upgrade from Moody’s Investors Services Inc. from A1 to Aa3.
This rating increase demonstrates the positive manner in which the district carries out
its fiscal responsibilities.
“The Aa3 rating is a testament to the hard work and financial integrity of Hutto ISD
campus, department, and administrative staff,” said Hutto ISD Chief Financial Officer
Glenn Graham. “We are committed to consistently managing taxpayer dollars in a
prudent and strategic way and take our role of custodians for taxpayer funds seriously.
Leadership from the Board of Trustees has always provided the guidance and support
for excellence in all aspects of financial management.”
According to Moody's rating release, “The issuer rating upgrade to Aa3 reflects the
district's materially stronger financial profile following a large surplus during fiscal 2020.
Liquidity and reserves are expected to remain favorable, given the district's strong
budgetary planning and adherence to formalized financial policies. Additionally, the
rating incorporates strong economic trends exhibited throughout the Austin metropolitan
area, which have translated to significant residential housing development in the district
and increased student enrollment. Finally, the Aa3 considers elevated balance sheet
leverage and fixed costs, which will remain high as the district continues to address
infrastructure needs associated with strong student demand.”
The full Moody’s rating release can be viewed here.
The higher bond rating has a direct impact on the interest rate obtained when bonds are
sold in the market. A higher rating results in a lower level of interest payments via a
reduced interest rate, which in turn provides relief to taxpayers by reducing the overall
debt burden.
“The Hutto community can celebrate the school district’s recent positive bond rating,”
said Superintendent Dr. Celina Estrada Thomas. “The upgraded bond rating represents
a commitment from the school board and district leadership to responsible fiscal
management.”