Feb. 28, 2018- Standard & Poor’s Global Ratings and Moody’s Investors Service have both assigned the highest quality ratings, AAA Stable and Aaa Stable respectively, to Collin College’s Series 2018 Limited Tax Bonds.
S&P Global Ratings assigned the college an AAA Stable rating which illustrates that the college’s capacity to meet financial commitments on the bonds is extremely strong. The new S&P Global Rating also included an upgrade in the financial management assessment of the college from “good” to “strong” based, among other factors, on the Collin College Board of Trustees’ adoption of a formal debt management policy; sound financial management practices which include monthly monitoring of financial position, results of operations, investment earnings, and, investment holdings by the Board. While assigning the AAA Stable rating to the Series 2018 Limited Tax Bonds, S&P Global Ratings also affirmed the AAA Stable rating on the college’s previously issued debt.
Moody’s Investors Service assigned the college an Aaa rating which indicates that Collin College is subject to the lowest level of credit risk. Moody’s Investors Service also cites “the college’s large and rapidly growing tax base located within the economically vibrant Dallas/Ft. Worth metropolitan area, with strong resident income and wealth levels, a very strong financial position, and low debt and pension liabilities” as the reasons for the top rating.
“These exemplary long-term credit ratings illustrate that Collin College is an exceptionally stable institution,” said Dr. Neil Matkin, Collin College district president. “We continually work toward improving our transparency, and I applaud our Board of Trustees for their stewardship, innovation, and support.”
The bonds are secured by the district’s direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property in the district. Proceeds from the bond issue will be used to reimburse the college for expenses incurred in constructing the college’s Public Safety Training Center and beginning construction on two new campuses—the Technical Campus and the Wylie Campus.
“Assignment of AAA Stable ratings to the college’s Series 2018 Limited Tax Bonds continues a tradition of financial excellence at Collin College that has been maintained continuously since the college’s founding in 1985,” said Kenneth D. Lynn, Collin College chief financial officer. “The sound financial management practices in place at Collin, which are fully supported by the Board of Trustees, are key to efficiently and effectively delivering quality instruction to students as well as responsibly managing the resources entrusted to the college by taxpayers.”
Collin College serves more than 53,000 credit and continuing education students annually and offers more than 100 degrees and certificates. The only public college in the county, Collin College is a partner to business, government and industry, providing customized training and work force development. In addition, the college operates the Collin Higher Education Center, which serves 3,200 additional students each year in partnership with The University of Texas at Dallas, Texas Woman’s University, Texas A&M Commerce, Texas Tech and the University of North Texas.