News Story

Moody's Investors Service has assigned Aa1 underlying and Aaa enhanced ratings to Dallas Independent School District's, TX $294.3 million Unlimited Tax School Bulding Bonds Series 2016A and $277.5 million Multi-Modal Unlimited Tax School Building Bonds, Series 2016B1-5. Concurrently, we have affirmed the Aa1 ratings on the district's outstanding GOULT and GOLT debt and the outlook remains stable. In addition to the underlying rating, we have assigned a Aaa enhanced rating based on a guarantee by the Texas Permanent School Fund (PSF) program.

The assignment of the Aa1 reflects the district's sound financial operations and healthy reserve levels stemming from conservative budgeting and tightened expenditure controls. Additionally, the Aa1 rating takes into consideration the district's large, diverse, and expanding tax base that are mitigating factors to the low socioeconomic profile that is typical for a large, urban school district. The district has a high direct debt burden and although new debt is expected, tax base growth is expected to keep the debt burden stable.