SHORT TERM CREDIT RATING INFORMATION
Moody’s Investor’s Service (“Moody’s”), Kroll Credit Rating Agency & Standard & Poors reviewed, for indicative credit purposes, the business fundamentals and financial condition of the Cobb County School District. In December, 2023, all three of these credit rating agencies assigned the highest short term credit rating (respectively) to the Cobb County School District (CCSD):
Moody’s – MIG1 (Municipal Investment Grade)
Kroll Credit Rating Agency – K1+ (Highest ST Rating from Kroll)
Standard & Poor’s – A-1 (Highest ST Rating from S&P)
These short term ratings are the highest ratings available for a governmental entity. This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.
Moody’s Rating Tier Definitions:
| Category | Category Description |
|---|---|
MIG 1 | Municipal Investment Grade 1 – Highest Rating This designation denotes superior credit quality. Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing. |
MIG 2 | Municipal Investment Grade 2 This designation denotes strong credit quality. Margins of protection are ample, although not as large as in the preceding group. |
MIG 3 | Municipal Investment Grade 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. |
MIG 4 | Municipal Investment Grade 4 This designation denotes speculative-grade credit quality. Debt instruments in this category may lack sufficient margins of protection. |
Kroll Credit Rating Agency Definitions:
| Category | Category Description |
|---|---|
| K1+ | Exceptional ability to meet short-term obligations |
| K1 | Very strong ability to meet short-term obligations |
| K2 | Strong ability to meet short-term obligations |
| K3 | Adequate ability to meet short-term obligations |
| B | Questionable ability to meet short-term obligations |
| C | Little ability to meet short-term obligations |
| D | Default |
Standard & Poor’s Rating Tier Definitions:
| Category | Category Description |
|---|---|
A-1 | S&P Global Rating A-1 Highest Short Term Rating. Strong Capacity to meet financial commitments. |
A-2 | S&P Global Rating A-2 Second Highest Short Term Rating. Satisfactory Capacity to meet financial commitments. |
A-3 | S&P Global Rating A-3 Third Highest Short Term Rating. Adequate Capacity to meet financial commitments. |
B | S&P Global Rating B Vulnerable Capacity to meet financial commitments. |
C | S&P Global Rating C Vulnerable Capacity to meet financial commitments and dependent upon favorable economic conditions. |
D | S&P Global Rating D In default or in breach of financial commitments. |
