4/26/2023 -- S&P Global Rating Services recently reviewed Parkway’s finances and reaffirmed the district’s “AAA” long-term rating, the highest available for school districts. S&P Global Ratings views the outlook for this rating as stable.
Parkway is one of only four school districts in Missouri to have an “AAA” rating. The ranking is based on strong financial performance and management, good financial practices and maintaining low debt levels.
In its report, S&P cited several complimentary highlights of Parkway’s financial outlook.
- Stable local economy, benefiting from participation in the broad, diverse St. Louis metropolitan statistical area; positive EAV increases; and continuing development projects;
- History of positive operating performance with very strong, sizable reserves (the combined general, special revenue funds) -- A low reliance on state aid revenue compared with its peers, reducing the risk of revenue volatility, further supports credit stability;
- Good financial-management policies, practices that include monthly budget-to-actual and investment-management reporting to the school board, rolling multiyear financial plan, and formal reserve policies to maintain 17.3% of federal and teacher's fund expenditures; and
- Low-to-moderate debt we expect will likely remain low as a percent of market value as it continues with additional debt plans, coupled with limited pressure from pension and other post-employment benefit liabilities due to adequately funded pension liabilities that do not pose medium-term credit risk, in our view.
About S&P Global Rating Services
S&P Global Ratings and its predecessor organizations have been in business for more than 150 years. They are the world’s leading provider of credit ratings. S&P has more than one million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities. The ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence.
