In a recent evaluation by bond credit rating agencies Moody's and S&P, Midland Independent School District (MISD) has once again received positive ratings, ensuring potential low interest rates for the upcoming bond sale, as reported in a MISD release. Moody's assigned MISD an Aa1 rating, upgrading its outlook to "positive" from "stable," while S&P affirmed its AA rating.
"These high ratings are great for both bond investors and Midland taxpayers,” said MISD Chief Financial Officer Tucker Durham in the release. “They show investors that MISD bonds are a low-risk investment. For the taxpayer, these ratings should result in a lower interest rate, saving on total repayment."
The district also carries a AAA rating from the Texas Permanent School Fund (TPSF). According to the TPSF website, independent school districts and charter districts benefit from the Fund's AAA credit rating by leading to reduced interest rates on their debt. This, in turn, allocates more funds toward enhancing school facilities, resulting in annual savings for Texas taxpayers, amounting to hundreds of millions of dollars.
Anticipating the first bond offering around March 5, MISD has decided to prioritize residents of Midland and Ector counties. The senior underwriter for the offering is Raymond James.
The $1.4 billion school bond, approved by voters in November, includes plans for constructing new Midland and Legacy high school campuses, a new elementary school in the Lone Star Trails area of Midland, and districtwide improvements to existing campuses.
To stay informed about the bond’s progress, visit the Midland Bond 2023 website.