GCISD Bond Remarketing Results
Posted on 08/05/2020

On Monday, July 27, GCISD went to market to obtain a lower “fixed” interest rate on the Series2012-B Bonds, resulting in a reduction of future bond payments by approximately $4.5 million. GCISD actively uses various debt management practices to lower the borrowing costs of taxpayers. The District was successful in obtaining a fixed “All-In” True Interest Rate of 0.73% and also reduced the repayment period of the bonds by nine years. GCISD will still maintain the flexibility to “prepay” other bonds in the future. Overall, Since 2005, GCISD has saved taxpayers $91.9 million in future interest costs by refunding and prepaying bonds.

“We have been very fortunate to have our community support bond programs in 2005, 2011 and 2016, which has provided enhanced learning environments and facilities for our students and staff,” Dr. Robin Ryan GCISD Superintendent said. “As a District, we are continually looking for ways to maximize the financial commitments afforded by our taxpayers through a proven method of financial management, not limited to refinancing bonds.”  

GCISD’s superior financial management is indicated by its credit rating from nationally recognized agencies such as Moody’s Investors Service and Standard & Poor’s (S&P) Global Ratings, that evaluate the District’s financial strength and its ability to pay its existing bonds.

GCISD is one of only 25 school districts in Texas to have the second highest rating possible, Aa1, from Moody’s. This rating is earned through a variety of indicators and clearly points to strong financial health as determined by an independent national evaluation. The District received a credit rating upgrade in July 2017, after the passage of the 2016 Bond Program.

In September 2019, the District received a credit rating upgrade from AA to AA+ from the S&P Global Rating Agency. The rating indicates that there is an expectation that the District will maintain its very strong financial position. By receiving the rating of AA+, GCISD has received the highest rating offered to a Texas school district. GCISD is one of 23 districts in the State of Texas to hold this high credit rating.