In a letter dated August 31st, S&P Global Ratings notified Lafayette Parish School System officials that the school system’s credit rating had been raised from “AA-“ to “AA.” The rating upgrade was based upon a number of factors, including the amount of reserve funds the board keeps on hand as well as the soundness of its financial management practices and policies. The “AA” rating makes the Lafayette Parish School Board equal to or higher than all the other school districts in the state, and Lafayette is one of only two districts in the state to have the rating. The “AA” rating will ultimately make it easier for the school system to sell bonds at lower yields, allowing it to further leverage its capacity to make improvements to school system infrastructure.
The school board’s very strong capacity to meet its financial commitments is a testament to school board policy and sound financial management. The combination of a good board and staff to prudently manage its financial obligations has born the fruit of a rating upgrade.