Fitch Ratings has affirmed the “AA” rating for the Dallas County Community College District’s $25.6 million in revenue financing system refunding bonds, series 2006, as part of its continuous surveillance effort.
Fitch Ratings said, “The ‘AA’ rating reflects conservative budgeting practices, favorable enrollment trends and a history of positive operations (for DCCCD). Counterbalancing factors include the potential for further reduction in state funding and added operational pressures related to recently completed capital projects.”
DCCCD’s RFS bonds are secured by all legally available revenues and balances, excluding ad valorem taxes and state appropriations. Only 25 percent of tuition garnered by the district may be pledged to its RFS bonds.
“We are affirmed for ‘AA’ revenue bond ratings by Fitch Ratings because they believe that DCCCD has a stable outlook. In other words, our excellent rating remained the same,” said Ed DesPlas, the district’s executive vice chancellor for business affairs. “This rating is significant because Fitch has been downgrading revenue issues for other businesses and institutions. Revenue issues are more sensitive to economic stress than general obligation bond issues.”
DCCCD’s general obligation bond rating will be assessed at a later date, according to DesPlas, because GO bonds are rated on a different cycle. The district’s general obligation bonds currently have “AAA” ratings from all three credit rating agencies.
