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Moody's Investors Service Cites CCCCD as Model Institution

Moody's Investors Service Cites Collin College as Model Institution

The Collin College is cited as a model institution for its credit-worthiness in a report released recently by Moody's Investors Service, which specializes in municipal credit evaluation.

Moody's, based in New York City, rates more than 140 two-year colleges based on their underlying credit quality and rates more than 70 other community colleges that have issued debt enhanced by a bond-insurance company.

In the special comment, entitled “Outlook for Community Colleges,” Moody's spotlighted Collin College's revenue debt capacity and general obligation debt capacity in a 600-word analysis.

Moody's rates Collin College's revenue bonds as A2 and its general obligation (G.O.) bonds as Aa2. “For those colleges with unenhanced or underlying ratings, the average G.O. rating is A1...and the average revenue rating is A3,” the report said. Collin College is above average in both categories.

In its analysis of Collin College's the report said:

“Moody's recently raised the district's general obligation bond rating to Aa2 from A1, reflecting its substantial and growing tax base, manageable general obligation debt position and well-maintained financial operations.”

“The overall general obligation debt burden of the District relative to taxable assessed value is moderate at 4.0% while the direct debt burden is minimal at 0.1%.”

“Flexibility to issue additional general obligation debt is afforded through ample taxing margin, as the present debt service tax rate of $0.17 is significantly below the local limit of $1.20.”

“I think it shows that you have to have a balance in the way you go about expanding and financing your growth,” commented Ralph G. Hall, Collin COllege vice president for administration. “I think Moody's liked the way we've used revenue bonds, general obligation bonds and how we've used our local resources.”

“We are constantly working on improving the fiscal practices at Collin College said Collin COllege president Cary A. Israel. “The Board of Trustees continues to be sound stewards of our public funds.”

Commented Carey Cox of McKinney, chairman of the Collin College Board of Trustees, “We are of course pleased by the recognition by Moody's. The college has been very conservative fiscally since its inception in 1985, and it is nice to have national confirmation of our management policies. 

Collin College serves more than 46,000 credit and continuing education students annually and offers more than 100 degree and certificate programs. The only public college in the county, Collin College is a partner to business, government and industry, providing customized training and work force development.