Recent Upgrades

In April 2004, Moody's Investors Service ("Moody's") upgraded the District's credit rating for its general obligation bonds to A2. This upgrade from Baa1 will enable the District to borrow at lower interest rates, which will produce debt service savings on each new bond issuance and on the District's outstanding variable rate bonds. According to Moody's, the upgrade reflects the sustained improvement in the District's economy and property tax base, as well as the District's multi-year record of improved financial management, controls and results. Moody's also cited the District's specific reserve requirements, commitment to maintaining fiscal balance, strong commercial and residential real estate markets, and improved financial management under the influence of the independent Chief Financial Officer as some of the other factors that influenced their decision.

In June 2003, Standard and Poor's ("S&P") and Fitch Ratings ("Fitch") upgraded the District's credit rating for its general obligation bonds to A- from BBB+. According to both rating services, these upgrades reflected a trend of steady commercial and residential investment resulting in strong tax base growth, the maintenance of structurally balanced operations as well as fully funded reserves during difficult economic and financial times, and improved management systems.

Historical Ratings

In the first half of 1999, the three major rating agencies raised the credit ratings on the District's outstanding general obligation bonds to "investment-grade." S&P and Fitch upgraded the District's rating to BBB, and Moody's upgraded it to Baa3.

In the first quarter of 2001, the District received another round of ratings increases. The rating agencies attributed the upgrades to the District's improved financial condition, which resulted from substantial operating surpluses, an improved debt position, and the expectation that improved management controls and reforms, along with economic development initiatives, will continue to strengthen credit fundamentals over the long term.