Moody's Credit Rating Service Downgrades West and West ISD - KXXV-TV News Channel 25 - Central Texas News and Weather for Waco, Temple, Killeen |

Moody's Credit Rating Service Downgrades West and West ISD

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WEST -

Moody's, a bond credit rating company, has downgraded both the city of West and West ISD.

The town was downgraded by one notch from Baa1 to Baa2 and the school district was down graded by three notches from A1 to Baa2. This will make it harder for the town and the school district to receive bonds or notes to cover the cost of damages.

"Both ratings are investment grade ratings and they are on the lower end of the investment grade ratings, and they do reflect moderate credit risks," said Adebola Kushimo, Analyst for Moody's Investor Service.

Kushimo is the lead analyst for West and West ISD. The reason for the downgrade boils down to FEMA's denial of nearly $18 million dollars in requested funding and the challenges of rebuilding.

"We believe the damages are outside of the producers or it gives an outside financial exposure to both entities," Kushimo said.

West ISD superintendent, Dr. Marty Crawford released a statement in response to the decision:

"Our stance is that it was expected. And as it was listed with their statement, it can improve and it will improve as that part of town regenerates through valuation renewal via construction of new homes. Our reserves are improving and we continue to positively work with FEMA in continuing our relationship for recovery in West and West ISD."

This doesn't mean the credit bond ratings will stay like this. 

"We always do review our ratings on an annual basis so the monitor of credit ratings will have something we incorporate if any new information happens," said Kushimo.

West ISD will receive money from their insurance claim and money donations. This will cover the cost of their portable units which will hold 750 middle and high school students come the start of the school year.

The credit downgrades won't affect the town immediately, but the future may be questionable. 

 

 

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