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Moody's upgrades Glenbard's long-term debt rating

Moody's Investor Service has upgraded Glenbard District 87's long-term debt rating on its outstanding General Obligation Unlimited Tax (GOULT) debt from Aa2 to Aa1. The Aa1 rating is the second highest rating issued by Moody’s service and this rating is in its high grade investment category.

Moody's is a highly respected source for credit ratings, risk analysis and research. Its rating affects a taxing body’s borrowing potential and ultimately the terms of debt issues.

“The improved credit rating is a testament to our Board of Education and Business Services Department’s focus on fiscal responsibility,” said Superintendent Mike Meissen. “We appreciate their exemplary work to maintain a solvent financial position, particularly in these difficult economic times.”

In its report, Moody’s said that it expects Glenbard District 87’s fiscal position will remain healthy, “due to the district's healthy General Fund reserve levels and strong management practices.” Glenbard District 87’s General Fund has posted six consecutive surpluses bolstering reserve levels.

Moody’s cited the following strengths regarding Glenbard’s finances:
• Healthy General Fund reserves with additional liquidity in the Working Cash Fund
• Modest debt profile with rapid amortization

Assistant Superintendent for Business Services Chris McClain said, “We are pleased with Moody’s assessment of District 87’s financial position and we will continue to work hard and focus on maintaining a strong financial position for the school district and community.”

Glenbard District 87 forecasts achieving key financial targets for fiscal year 2011-2012 established by the Board of Education. The targets are:
• Balanced budget
• No short-term borrowing to meet cash flow requirements
• Solvency position

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