Moody’s upgrades credit rating to AAA

Highest rating possible; expected to save taxpayers money

RADNOR » Radnor schools are getting an update on their debt.

Radnor school officials this week said Moody’s Investors Service upgraded its debt from the second-highest rating of Aa 1 to the highest level at Aaa.

“The district’s Aaa issuer rating reflects its robust resident wealth and income levels, along with its excellent and improving financial position. The rating also captures the district’s moderate but manageable leverage. The district’s credit quality benefits from its ongoing willingness to increase its property tax levy, along with its additional reserves held outside of its General Fund,” Moodys said in a press release.

During a finance committee meeting Tuesday, Brian Pawling, the district’s business administrator, said Radnor is joining eight other school districts in the state with the Aaa rating.

“So now we are one of nine schools in the commonwealth that has an Aaa rating,” Pawling said.

He cited Lower Merion and West Chester as nearby districts with the rating.

“What the Aaa rating does is 9 (to) say this is the safest investment that a purchaser of bonds can make. We are the gold standard of safety in that type of environment,” Pawling said.

According to Pawling, during a recent bond sale, the district netted $313,000 in savings, which was $113,000 more than the $200,000 expected under the Aa 1 rating.

School officials say the upgrade will help as they begin financing the construction of a new Ithan Elementary School.

“This is a significant win for us at this time as we’re getting ready to embark on the Ithan project. This is a big win for the community, both short-term and longterm,” said board member Susan Stern.

Pawling credited the board and the administration for the accomplishment.

“This upgrade is a major accomplishment for the Radnor Township School District and will benefit us in longterm borrowing opportunities for future projects,” Pawling said in a press release issued before the board’s finance meeting. “This rating is a testament to the fiscal balance of the board of directors and administration in maintaining excellent reserves while being responsible to the taxpayers in the community.”