Fitch Ratings, a global research and financial ratings organization, has given ‘AA’ ratings to the Fairfield City School District with regard to its Issuer Default Rating (IDR), and its unlimited tax general obligation (ULTGO).
The bonds, in the amount of $61.3 million, were issued in 2014 for school improvements. Fitch's highest rating is AAA, which is reserved for entities that are reliable and stable. The AA is still a very high rating, but the entity is seen as slightly higher risk.
The district's high ratings are due to its strong financial resilience, which stems from the fact its general fund reserves are healthy. Fairfield also benefits from its proximity to Cincinnati, and the fact its economy is diversified across several sectors including manufacturing, healthcare, and financial services. In addition, Fitch believes that Fairfield would have financial flexibility even if there is a moderate downturn in the economy, since it has a strong reserve position.
For the long term, Fitch believes that Fairfield will be in good shape, since it has very little long-term liability, and its debts are expected to remain stable, since any borrowing plans are limited in scope, and it has little if any overlapping debt.
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