Pima County Community College District Earns Fitch Rating Upgrade to 'AA+'
TUCSON, AZ – Fitch Ratings (“Fitch”) upgraded the College’s Issuer Default Rating to AA+ from AA. The issuer-level ratings are based on a number of factors, such as the College’s financial policies, managerial strategy, operating performance and its financial resources.
In its upgrade announcement, Fitch noted the district’s commitment to financial resilience and budgetary flexibility. The rating on approximately $44 million of outstanding combined fee revenue bonds was affirmed at 'AA-'.
“We are pleased with Fitch’s announcement as it validates the College’s continued and ongoing focus on financial stewardship,” said Dr. David Bea, Executive Vice Chancellor for Finance and Administration. “Using our resources efficiently ensures the College operates in a way that meets the educational needs of the community while providing value and transparency for students and taxpayers.”
A higher bond rating is a reflection of an institution's financial health and lowers the cost of borrowing. Fitch noted the upgrade reflects the district’s robust financial health, characterized by a "high midrange" level of budgetary flexibility and a strong ability to maintain net working capital well above 10% of total expenses. The upgraded rating also takes into account the district’s mixed demographic and economic metrics, including a diverse economy and sufficient population size, alongside a stable long-term liability profile.
The outlook for these ratings is stable, reflecting Fitch's confidence in the district's ability to sustain its strong financial position in the coming years. According to Fitch, the 'AA-' rating on the combined fee revenue bonds is supported by the district's solid resilience to revenue fluctuations and the ability to manage debt service coverage effectively.
For more information, please contact Phil Burdick, Vice Chancellor, External Relations at pburdick@pima.edu.
CONTACT:
Phil Burdick
Vice Chancellor for External Relations
pburdick@pima.edu