MiraCosta College earns highest bond ratings from Moody’s & S&P for a third time



Dr. Sunita Cooke
Superintendent/President
MiraCosta College

The MiraCosta Community College District maintains the highest credit ratings from both Moody’s Investors Services (Moody’s) and Standard & Poor’s Global (S&P), receiving a AAA from Standard and Poor’s Global and a AAA from Moody’s. This is the third time MiraCosta has received each agency’s top rating, having also earned the same ratings in 2017 and 2020.

Both agencies recognized the District’s healthy financial position, the sustainable tax base of North County San Diego, leadership, and solid student enrollment. According to Moody’s report, the MiraCosta College assigned rating is based on the following statement. “The stable outlook reflects our expectations that financial performance will remain sound, supported by continued tax base growth, conservative budgeting practices, and strong liquidity.”

Meanwhile, the S&P report explains, “the ratings reflect our view of the district’s:

· Deep, diverse, and wealthy tax base that is extremely strong on a per capita level,

·Strong financial policies and practices, with an experienced management team,

· Community-funded status that generates an additional $68 million of operating revenue outside of the state framework, and

· Maintenance of very strong and growing available general fund balances, which management expects will continue.”

A key factor in the AAA credit rating was the District’s strong Financial Management Assessment (FMA). The report elaborates that, “We view the district’s financial management policies and practices as strong under our financial management assessment (FMA) methodology. An FMA of strong indicates financial practices are strong, well embedded, and likely sustainable. Key management practices and policies include frequent review of the budget with board participation, as well as realistic and well-grounded revenue and expenditure assumptions.” The report also notes that, “Driven by the district’s recent history of positive financial performance, it maintained its reserve position at levels that we consider very strong, building its unrestricted general fund reserves by more than 23% over the past three years.”

“The District is committed to maintaining a sustainable and transparent financial model. This is clearly articulated in our long-term goals and is one of the factors that has led to these excellent ratings,” comments MiraCosta College Superintendent/President Dr. Sunita Cooke. “The favorable reports reflect the District’s strong and stable board of trustees and the dedicated work of the exceptional employees who serve our students and community daily.”

The high ratings come as MiraCosta College prepares to issue its third round of general obligation bonds, which authorized $455 million in 2016 through the passage of Proposition MM by the District’s local taxpayers. The bond money will be used to modernize aging facilities and upgrade instructional technology.

“The high credit ratings are a recognition of MiraCosta’s fiscal prudence that allows us to continue to be good stewards of taxpayer dollars. The highest bond rating means the lowest possible borrowing cost and savings to the taxpayers,” explains Board President Anna Pedroza.