S&P upgrades school district’s bond rating

The school district’s bond rating has been upgraded from A to A+ by Standard & Poor’s.

The change, which occurred May 19, followed the district’s recent refinancing of a 15-year bond it took out in 2008.

District Business Administrator Lissa Jilek said the higher rating will help the Saugerties district secure better terms for future borrowing.

“When you have a better financial rating, you attract more interest in the bond market,” she said.

“There are players out there who are looking for solid, secure bonds to purchase, and they know that the financial risk is minimal because your rating is good, therefore they really want to buy your bonds,” Jilek said. “So that leads to more competition among the bidders.”

The district has refinanced the remaining $3.25 million of an $8.09 million bond it took out in 2008 to help cover the cost of a 2006 capital project. The refinancing reduces the interest rate on the bond from 3.26 percent to 1.45 percent.

The 2008 bond was one of to the district took out to fund the capital project. The other, dating to 2007, totaled $18.5 million and a had a 4.24 percent interest rate. It was refinanced in June 2015 to cut the interest rate to 1.87 percent.

“Between the two [refinancings], we save $413,000,” Jilek said.

The bond rating upgrade was the first for the district in four years.

“It had been at an A since 2013,” Jilek said.

Standard & Poor’s has 22 levels of bond ratings for long-term debt, ranging from a high of AAA to a low of D.

The A+ rating given to Saugerties is S&P’s fifth highest. A is the sixth highest.