Moody's Upgrades Briarcliff Manor Union Free School District's Credit Rating

Strategic Insights -

Moody's Investors Service has upgraded the credit rating of Briarcliff Manor Union Free School District, NY to Aa1 from Aa2, citing the district's strong resident wealth and income, as well as its continued solid financial performance. The upgrade reflects the district's ability to maintain a healthy financial position, with a satisfactory reserve and liquidity profile, and a manageable debt burden. The Aa1 rating is equivalent to the Aa1 issuer rating based on the district's pledge of its full faith and credit and unlimited authority to levy property taxes sufficient to pay debt service.

Key Takeaways:

  • Moody's has upgraded the credit rating of Briarcliff Manor Union Free School District, NY to Aa1 from Aa2, citing strong resident wealth and income.
  • The district's affluent tax base, with property wealth at over $330,000 full value per capita and high resident income at approximately 275% of the national median, supports a healthy financial position.
  • Management's conservative budgeting continues to support a satisfactory reserve and liquidity profile, with a projected surplus in fiscal 2025 and a manageable debt burden.
  • The Aa1 issuer rating reflects the district's strong financial position and its ability to maintain a healthy reserve and liquidity profile.
  • The Aa1 GOULT rating is equivalent to the Aa1 issuer rating based on the district's pledge of its full faith and credit and unlimited authority to levy property taxes sufficient to pay debt service.
  • The district's ability to maintain a strong financial position is driven by its affluent tax base, conservative budgeting, and manageable debt burden.
  • The district's credit rating outlook is stable, with no assigned outlooks to local governments with this amount of debt.

Statistics:

  • $22.5 million: approximate amount of School District Serial Bonds - 2025 issued by the district.
  • $28.4 million: total amount of debt outstanding, inclusive of the new issue.
  • 275%: high resident income as a percentage of the national median.
  • 25%: minimum reserve and liquidity profile to maintain a satisfactory rating.
  • 10%: minimum reserve and liquidity profile to avoid a downgrade.
  • 1,344: number of students served by the district.
  • 30 miles: distance of the district from New York City.

Sources:

Moody's Investors Service

US K-12 Public School Districts methodology published in July 2024, available at https://ratings.moodys.com/rmc-documents/425431

Rating Methodologies page on https://ratings.moodys.com