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For immediate release — May 7, 2012Newsbrief
(DALLAS) — Fitch Ratings has affirmed its “AAA” rating for the Dallas County Community College District’s outstanding general obligation debt, which comprises $372 million in GO bonds and $2.1 million in maintenance tax notes. Additionally, Fitch’s announcement says that it made no ratings distinction between DCCCD’s GO bonds and maintenance tax notes “given the district’s ample taxing margin.”
DCCCD’s GO bonds are secured by an ad valorem tax which is levied against all taxable property within the district, limited to $0.50 per $100 of taxable assessed valuation. The district’s maintenance tax notes are secured by an operations and maintenance ad valorem tax levied against all taxable property within the district as well, limited to $0.16 per $100 of taxable assessed valuation.
Fitch’s also said, “DCCCD finances have experienced some operating pressure, given moderate declines in state appropriations and taxable values as well as increased costs associated with expanded facilities. Those pressures are offset by the recent implementation of recurring expenditure reductions as well as considerable revenue raising flexibility provided by low tuition and tax rates. Fitch expects the district will maintain its historically strong financial profile.”
Ed DesPlas, DCCCD’s executive vice chancellor for business affairs, said in response to the “AAA” rating on GO debt from Fitch: “Given the difficult economic environment we face and the heightened sense of ‘due diligence’ that rating agencies apply when they conduct their surveillance, DCCCD has worked very hard — and shall continue to work very aggressively — to maintain its perfect rating.”
He added, “To coin a phrase: ‘It takes a village to maintain a AAA rating.’ DCCCD’s credit rating is built on the strength of Dallas County, the sage governance of the district’s board of trustees and our management’s consistently sound planning, controls and decision making.”
For more information, contact DesPlas by phone at (972) 860-7752 or by email at email@example.com.
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Press contact: Ann Hatch214-378-1819(652)