Southwestern College was assigned AA credit ratings by the nation's largest investment services for it’s bond obligations.
In considering the diversity of San Diego’s southern region, an AA-long term rating was assigned by S&P Global Ratings while Moody’s Investors Services assigned the college an Aa2 rating.
“Maintaining our AA ratings demonstrates to investors that Southwestern College–and more importantly our students–are a worthwhile investment,” said Dr. Kelly Hall, the assistant superintendent/vice president for business and financial affairs. “Our governing board has kept their fiduciary responsibility to South County taxpayers at the forefront in helping us manage our construction program.”
The college refinanced $55 million of Proposition R bonds sold in 2008 for a lower interest rate last year, saving South County taxpayers more than $10 million over the next 20 years. Voters approved the $389 million general obligation bond, Proposition R in 2008.
During the week of Oct.18, the college released remaining bonds of Proposition R valued at $73.6 million. The remaining $184 million was from Proposition Z. Approved by voters in 2016, Proposition Z is the $400 million general obligation bond.
These bonds aim to finance the acquisition, construction and the improvements of phase one projects included in the Facilities Master Plan. A new Student Union and Instructional Building One / University Center – both on the Chula Vista campus – and the Automotive Technology facility at the Higher Education Center at Otay Mesa are the next projects in line.
