Dry Creek school district GO bonds affirmed at AA+, outlook stable

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Dry Creek GO bonds AA+

Highlights

Fitch affirmed Dry Creek school district’s 2008 GO bonds and Issuer Default Rating at 'AA+' with a Stable Outlook, citing strong financial resilience.
The district’s fiscal 2023 available reserves reached a five-year low of 30.9%, with expectations for reserves to exceed 35% in the near term.
Fitch removed the 2008 and 2009 GO bonds from Under Criteria Observation, aligning them with the district’s Issuer Default Rating after updated criteria application.

Fitch action and rating drivers

As reported by Fitch Ratings, the affirmation covers the district's Election of 2008 unlimited tax general obligation bonds and its Issuer Default Rating, both at 'AA+', with a Stable Outlook.

Fitch says the rating reflects the district's financial resilience at 'aaa' despite what it describes as 'limited' budgetary flexibility. The agency points to five-year low available reserves of 30.9% in fiscal 2023, while noting the district anticipates reserves will be sustained above 35% in the near term, supporting the financial resilience assessment.

Economic profile and UCO removal

The rating also incorporates what Fitch describes as 'strong' demographic and economic metrics, supported by high median household income and educational attainment. Population growth is assessed as 'midrange', while the long-term liability burden composite is rated 'strong' because of debt amortization and continued improvement in the district's economic resource base.

Fitch says the removal of the district's rated 2008 and 2009 GO bond series from Under Criteria Observation reflects that the securities do not meet its criteria to be rated above the district's Issuer Default Rating. The move aligns the bond treatment with Fitch's current criteria approach for the district's credit profile.

Our earlier coverage of Fitch’s affirmation of MultiCare Health System’s 'A+' ratings explained that the stable outlook was supported by the provider’s broad and growing market position across Washington and an improving operating trend. We also noted Fitch’s emphasis on strengthening performance, robust volume growth and the ability to keep investing strategically while maintaining balance sheet strength.

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Dry Creek school district GO bonds affirmed at AA+, outlook stable

Highlights

Fitch action and rating drivers

Economic profile and UCO removal

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