Moody’s Investors Service has withdrawn its credit rating for the DeKalb County School District, which could affect future spending and the district’s creditworthiness.
The move could prove problematic for the district, as credit ratings directly impact how much secured funding can cost in terms of interest, or whether it can be obtained at all.
The district said in a statement that financial operations will not be affected. The district’s credit rating through Standard and Poor’s also remains unchanged at this time, but that could change given the Moody’s news..
At issue: Moody’s wants to see audited financial information for the 2018 fiscal year, which ran from July 1, 2017, to June 30, 2018. But district officials submitted those financial documents to the Georgia Department of Audits and Accounts in late December 2019, more than a year after they were expected. It typically takes between three and four months for those audits to be completed.
The district, under the leadership of former Superintendent Steve Green, took hits publicly for failing to submit the audit documents while asking for additional funding. Many parents and local advocacy groups have questioned the district’s spending. Interim Superintendent Ramona Tyson, who took over district operations in November, prioritized completion of the 2018 and 2019 financial audits.
“Upon taking the role in November, the interim superintendent immediately formed a team to implement a corrective action plan and submit the requested financial information as quickly as possible,” the district said in a statement.
When the audits are complete, the district will share the information with Moody’s, which should then reassign a credit rating.
Moody’s announced it was placing the district “on review with direction uncertain” in January, officials were still toying with the idea of a general obligation bond to seek tax funds pay for capital project cost overruns and projects not covered under the district’s Education-Special Purpose Local Option Sales Tax program.
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