District Receives Highest Bond Rating from Standard & Poor's

In preparation for its sale of bonds, the Palo Alto Unified School District's rating was raised from AA+ to AAA by Standard & Poor's, making it one of just six California school districts with that rating and the highest rating possible from the rating agency. This rating was done in preparation for the first issuance of $120 million worth of bonds associated with Measure A, which passed with a 77.5% approval by District voters in June. The District plans to sell the first series of bonds in September.

The upgrade reflects the District's "consistent" financial performance, "strong and diverse" economy . . . and "low" debt levels, said Standard and Poor's analyst Shannon Groff in a report..

In addition to review by Standard and Poor's, the District's bonds have been rated by Moody's, resulting in an Aa2 rating, the highest rating any school district in California has at this time..

Dr. Bob Golton said, "We are extremely pleased with these ratings for two reasons. First, they confirm the financial strength of the District. Perhaps more importantly, though, these high ratings will save the taxpayers money because high ratings by these agencies mean lower interest costs for the District, and, therefore, less tax for District property owners than they would otherwise pay.".

Contact: Bob Golton, Co-Chief Business Officer @ 650/329-3980