Credit rating agency S&P Global Ratings announced that Pine-Richland School District’s general obligation bond rating has increased to AA Stable from AA- Stable.
“An obligor rated AA has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree,” according to S&P. A lower-rated entity pays a higher interest rate on borrowing to compensate for the risk of the investment.
The change reflects the Pine-Richland’s positive financial performance, strong financial reserves, responsible management of debt, stable financial outlook and viability.
“This upgrade is the result of many years of disciplined effort and collaborative focus by the board and administration,” said Superintendent Brian Miller. “It is incredibly difficult to receive an upgrade. This measure of financial health leads directly to stability in educational programs and services.”
S&P Bond Ratings evaluate an organization’s capacity to meet financial commitments such as payment of debt obligations. The district was last evaluated in 2021 and had been rated AA- since 2013.
S&P noted that factors contributing to the upgrade include the district’s ability to build reserves and reduce exposure to variable-rate debt. The agency also noted that the district’s strong economy has maintained high market values and income metrics driven by a stable, diverse tax base.
“Pine-Richland is a destination district. The acknowledgment of financial health by S&P Global should serve as a great news report for the entire community,” said Chris Juzwick, director of financial services and operations.
The district’s healthy financial position is grounded in a framework that includes strong financial management practices and policies, 10-year capital planning and a five-year budget model. The reduction in overall debt while funding capital projects within operational budgeting also contributed to the rating upgrade.
This commitment to fiscal responsibility has ensured that the real estate tax rate in the district has remained steady since 2017 at 19.5867 mills and continues to be one of the lowest in Allegheny County.