MIDLAND Midland ISD has announced that Moody’s has upgraded Midland ISD’s issuer rating from Aa1 to Aaa, making it one of only six school districts in Texas to achieve this top rating. This upgrade reflects the district’s strong financial management and governance, which have led to high reserves and prudent debt management.
A key factor in this rating is MISD’s ability to retire debt early, saving taxpayers money. Since 2012, the district has saved taxpayers nearly $92 million through refinancing and early debt repayment. This approach, along with reserves exceeding 45% of revenue, helps mitigate challenges such as stagnant state funding and economic fluctuations, a news release said.
“This is a huge accomplishment for the district as we’re one of only six school districts in the state with this exceptional rating,” said Tucker Durham, Chief Financial Officer for MISD. “The upgraded rating is attributed to the district’s current financials, aggressive debt repayment plan, and the management by the Board of Trustees and the district. This rating shows investors the district is a low-risk investment. This will also help achieve the best interest rating when we return to the market slated for next year to sell the remaining voter-authorized 2023 bond.”
MISD’s location in the Permian Basin continues to drive economic growth, with strong property values and enrollment trends. Debt remains manageable at 236% of revenue and is expected to decrease in 2025 due to a significant debt payoff.
This upgrade is a testament to MISD’s financial leadership, responsible budget management, and commitment to long-term fiscal health.
The stable outlook reflects the expectation that MISD’s Board of Trustees and finance department will continue to guide the district through its current need for financial efficiencies, and the district will maintain strong operating performance with reserves exceeding 35% of operating revenue. This upgraded rating also reflects the expectation that the leverage will remain manageable. Midland ISD is proud of this accomplishment and looks forward to continuing with its strong fiscal management, the release said.
