Moody’s Investors Service has assigned an A1 issuer rating to Chillicothe Independent School District and concurrently upgraded the district’s general obligation unlimited tax rating to A1 from Baa1. The issuer rating reflects the district’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features.
The action affects $6.8 million in Moody’s rated debt and concludes a review for possible upgrade initiated on January 26, 2021 in conjunction with the release of the US K-12 Public School Districts Methodology.
The A1 issuer rating incorporates the district’s very strong financial reserve position, moderate leverage and fixed costs, as well as a stable enrollment trend. The rating further reflects the district’s limited and concentrated economy in the energy sector. The coronavirus pandemic has not had a material impact on the district and the ample reserve position provides financial flexibility.