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Pat-Med's Financial Rating Upgraded By Investor Service

Rating upgrade reflects the district's improved financial position and track record of conservative budgeting, Moody's Investors Service says.

Patchogue-Medford School District Administration Building. Photo Credit: Michael Sorrentino
Patchogue-Medford School District Administration Building. Photo Credit: Michael Sorrentino

The financial position of Patchogue-Medford School District is improving, according to the Moody’s Investors Service.

The service recently announced that the district has been upgraded to the A1 rating from the A2 rating. According to Fidelity, the next highest rank is Aa3, with Aaa being the highest.

“The rating upgrade reflects the district's improved financial position and track record of conservative budgeting,” states the summary ratings rationale on the service. “The rating incorporates the district's sizeable tax base with average wealth levels, improved liquidity, increased general fund balances, and average debt burden.”

Strengths for the district were listed as Patchogue-Medford having a sizable tax base with an average socioeconomic profile, and the district having an improved cash reserve and general fund balance. Challenges listed are the statewide property cap and short term borrowing for liquidity.

Moody’s says the rating could go up if there is a significant expansion of the district’s tax base or strengthening of the demographic profile, sustained structural balance in the general fund and reduced reliance on short-term borrowing for cash flow purposes and significant and sustained improvement of general fund balance and cash reserves.

The service says the rating could go down if there is a deterioration of the tax base, a decrease in total general fund reserves and liquidity declines and/or a loss of structural balance.

Click here to see the full announcement on Moody’s Investor’s Service.

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