Bond Ratings Maintained, Peralta Community College District Bonds No Longer On Watch List

With its bond rating maintained, Peralta Community College District bonds have been removed from the watch list of a leading crediting-rating agency. Standard & Poor's affirmed its 'AA-' rating on the district's General Obligation (GO) bonds and 'A+' rating on the district's pension obligation bonds in July. Both of these are considered strong ratings by the company.

The agency cited the district's adoption of a budget for 2009-2010 and improved financial accounting systems for its reason to remove the district from its watch list. Because of the State of California's budget crisis and the district's probationary accreditation status, Standard & Poor's continues to view the bond outlook as “negative.”

The company measures the ability of public agencies and private companies to pay off debt. The recent restoration replaces a previous warning issued in April.

A sign of a return to financial stability, the restored bond rating is good news for the district, as higher ratings allow local government agencies to borrow money at a lower cost.

"This is welcomed news by an independent agency and it demonstrates that the reform efforts instituted by the Board are starting to show dividends," commented Abel Guillen, President of the Peralta Board of Trustees.

The next regularly scheduled meeting of the Board of Trustees is scheduled for September 14th at 7PM at 333 East Eight Street, Oakland, CA.