Trinity credit rating not downgraded to junk bond status
Trinity Area School District’s credit rating has not been downgraded to a “junk bond rating category,” as was reported by the state auditor general’s office.
A news release from the auditor general’s office on Tuesday incorrectly stated that eight Pennsylvania school districts had fallen to junk bond status, and indicated that Trinity was among them.
Barry Ciccocioppo, communications director, said that, in fact, eight school districts had received downgraded bond ratings since April and that three of those school districts – McKeesport, Penn Hills and East Allegheny – had dropped to speculative status, considered a “junk bond” rating.
Trinity’s credit rating has dropped from an A1 rating to a Baa rating.
“It was unfortunate that the auditor general’s office incorrectly identified Trinity as having a junk bond rating,” said David Roussos, director of fiscal services at Trinity. “In fact, Standard & Poor’s and Moody’s consider Trinity to be a very sound investment risk. We appreciate the attorney general’s correction of this error.”
Standard & Poor’s issued Trinity a AA rating.
Roussos said the downgrade from Moody’s was expected because of the district’s April refinancing. In April, the school board approved the restructuring of $21 million long-term bond debt.