Improved Bond Rating for ESM

The District is pleased to announce that S & P Global has raised the district’s 2019 bond rating from AA- with a Stable Outlook designation to an AA rating, along with a Stable Outlook designation. As a result, the district now stands to save hundreds of thousands of dollars in interest costs over the next decade, particularly with this year’s borrowing of $70 million for the Capital Project, an additional $20 million the following year and scheduled TAN borrowing.     

Each time Eastport-South Manor borrows funds, it is reviewed by credit-rating agency S&P Global to determine its credit worthiness. S&P Global is a financial intelligence provider that supplies detailed information on the credit standing of countries, states, local governments and municipalities to the largest financial institutions in the world. A higher municipal credit rating earns lower interest rates for borrowed funds, resulting in less interest paid on the lifetime of a loan. Ratings are designated from a high of AAA+ to as low as D-.    

Assistant Superintendent for Business and Operations Timothy Laube explained during the May 7 board of education meeting that the improved bond rating was due to the district’s financial stability, as well as the result of improved and upgraded facilities, seven years of passed school budgets, steady school leadership and the voter-approved capital project in 2022.  

Board President Jeffrey Goldhammer congratulated Mr. Laube on the improved credit rating and noted that the district has been “proactive” over the years in its work to improve district finances.