Citing Improved Financial Position, S&P Upgrades District 113A Outlook to Positive

Citing "signifcantly improved cash flow and financial position," officials from Standard & Poor's Rating Serviceshave upgraded the outlook in from negative to positive, the company announced Thursday.

The district retained its BBB rating, according to the S&P website.

"The revised outlook reflects our view of the district's significantly improved cash flow and financial position due to the implementation of major expenditure reductions and a new management team," Standard & Poor credit analyst Caroline West said in a statement.

In an email Friday morning, District 113A Superintendent Susan Birkenmaier said the administration is "very pleased with the improvement in our bond rating.

"It’s a great credit to the Board of Education, finance committee and (Business Manager Barbara Germany), who have all worked diligently to improve the finances of the district," Birkenmaier said. "We will continue to work to improve the financial stability of District 113A. We also want to thank the staff and community for their continued patience and support. The improvement to our bond rating shows that we’re on the right track and will continue to take steps to improve."

According to West, the BBB rating could be upgraded within the next two years if District 113A's financial position continues to improve.

"If the district's reserve levels continue to grow toward meeting the board policy, if cash flow remains stable, and if staff and residents continue to buy-in to the district's changes, we could raise the rating during the two-year outlook timeframe," she said.

Board President Dave Molitor confirmed the news Thursday night, and said a press release with more information would be released Friday.

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