(July 15, 2021) For the second time in less than a year, the City of Rochester’s credit rating has been upgraded because of significant improvement in the Rochester City School District’s financial position. Standard and Poor (S and P) says the City’s credit rating has been revised to stable from negative, and an AA rating has been affirmed.
A report from S and P says this most recent stable outlook was achieved because of an increase in state aid and continued work by the District to balance its finances. S and P says with this most recent stable outlook, it does not believe the District is likely to pressure the City’s finances. Additionally, S and P reports the District has realized savings over the past two years, with growing state aid and additional federal funds and as a result, has sufficient funds to operate for several years without negatively impacting or pressuring the City’s operations or reserves.
In March of 2021, Moody’s Investor Services upgraded the City of Rochester’s credit rating revising it from negative to stable, with an A2 rating. At that time, Moody’s had indicated the District had significantly improved governance as a result of the 2020 appointment of a State Independent Monitor to oversee the District’s financial operations and educational achievements. Additionally, there had been continued improvement in the District’s General Fund and an expectation that reserve balances would continue to improve over the next two years.
“This positive news is a significant accomplishment and it reaffirms the work we have been doing to improve our fiscal stability”, said Superintendent Lesli Myers-Small. “This achievement emphasizes our continued partnership with the Board of Education, the State appointed monitor, and the City of Rochester.”
