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NASHOBA TECH RECEIVES SECOND-HIGHEST BOND RATING AVAILABLE FROM MOODY’S
NASHOBA TECH RECEIVES SECOND-HIGHEST BOND RATING AVAILABLE FROM MOODY’S
Posted on 09/16/2014
This is the image for the news article titled NASHOBA TECH RECEIVES SECOND-HIGHEST BOND RATING AVAILABLE FROM MOODY’S  WESTFORD — Moody’s Investors Service has upgraded the long-term bond rating of the Nashoba Valley Technical High School District from Aa2 to Aa1, the second-highest rating Moody’s gives.
        Moody’s listed as Nashoba Tech’s strengths its strong financial performance, resulting in an above-average General Fund reserve position, and the district’s low debt burden.
        The rating puts Nashoba Tech in the Prime-1 category for short-term ratings, meaning its has the “best ability to repay short-term debt.”
        “We are most fortunate that our business practices have been recognized by Moody’s as being of the highest caliber,” said Superintendent Dr. Judith L. Klimkiewicz. “One of the significant statements is that they said we’re not just managed responsibly fiscally, but that the whole facility is managed responsibly.”
        Dr. Klimkiewicz, who believes Nashoba Tech is the second-highest-rated school district in Massachusetts by Moody’s, said the rating will be most helpful when it comes to bonding future capital projects, including an upcoming roof replacement.
        Jeanne Savoie, Nashoba Tech’s business manager, said, “I’m pleased to be able to work in a district that is so well run, and that we’re able to save money on these projects. The building is in such wonderful shape, and I’m thrilled that we’re able to do that for our students.”
        According to Moody’s, the upgrade to Aa1 reflects Nashoba Tech’s “above-average General Fund reserve position, low debt burden and strong socio-economic indicators,” as well as its “positive, yet limited, enrollment growth.”
        The only challenge Moody’s list to the high rating is the limited potential of enrollment growth, though it notes that enrollment has made “incremental improvements each year and stood at 731 in fiscal 2014, a 10.4 percent increase from an enrollment of 662 in fiscal 2009.”
        “Enrollment in the district is highly desirable given 10.5 percent of the student base is School Choice and must transport themselves to the school,” Moody’s report states, adding that though enrollment is ultimately capped at 950 students, the “district does not anticipate approaching the facility’s capacity limitations over the medium term.”
        “Further,” the report adds, “the district is methodical in its growth in order to maintain a student/teacher ratio that mitigates safety issues arising from its technical nature.”
        Klimkiewicz believes that among Massachusetts school districts, only the Concord-Carlisle Regional School District has received a higher bond rating from Moody’s, at Aaa, the highest rating available.