S&P Global Ratings Awards AAA Rating to Lone Star College
HOUSTON, TX - Lone Star College received a AAA rating from S&P Global Ratings Service (formerly Standard & Poor’s). LSC has maintained a AAA rating – the highest rating possible – since 2009.
“During these times of economic uncertainty, it is important Lone Star College maintains a solid financial position,” said Stephen C. Head, Ph.D., LSC chancellor. “These ratings verify that Lone Star College remains in good standing.”
In its report, S&P Global Ratings noted “we think that management has taken steps to address COVID-19 pandemic. The system's financial performance remains satisfactory in fiscal 2019.”
S&P Global Ratings assigned its AAA long-term rating to Lone Star College System, Texas' $20 million series 2020 limited tax general obligation refunding bonds. S&P also affirmed its AAA rating on the LSC existing General Obligation debt.
“The AAA rating lets Lone Star College get the best market rates available, potentially saving millions of dollars to taxpayers,” said Alton Smith, Ed.D., LSC Board of Trustees chair. “I would like to thank Dr. Head and his team for their efforts in keeping Lone Star College in such good financial shape.”
LSC voters passed a $485 million bond referendum in November 2014 which is being used to create learning space to keep up with the incredible growth the college has experienced over the last 10 years. LSC added nearly 29,000 students from fall 2009 to fall 2019, a 49% increase in student enrollment.
The Credit Overview of LSC in the S&P Global Ratings report concluded “the rating reflects our opinion of the district's history of balanced operational performance. While many Texas community colleges have seen recent enrollment declines, the district experienced moderate growth as a result of the solid demand from both its traditional transfer and workforce-development programs.”