Moody's Investors Service, one of three national credit rating agencies on Wall Street, upgraded DeSoto County School District's bond rating from Aa3 to Aa2.

"We were already the highest rated school district in Mississippi, and now we are among the highest rated school districts in the nation for fiscal responsibility," said Ken Reid, assistant superintendent of finance for DCS. "The state of Mississippi has an Aa3 rating.  Our rating is better."

What does a better bond rating mean to the school district?

"It means a better interest rate on bonds," Reid explained.  "It signifies to investors that we are fiscally stable and our bonds are a safer investment.  The ability to borrow money at a lower investment rate will significantly reduce the overall cost of the bonds, thus saving DCS 'big bucks.'"

For example, Reid explained, DCS will borrow $15,000,000 in the next few weeks to complete the $60 million bond issue that was approved in 2008. This money will be used to complete the last of 15 new schools the district has built in the last seven years.

"A better bond rating will result in a lower interest rate,” Reid said. “If we lower the interest rate by even one percent, that could mean a savings of $150,000 per year. The upgrade could save millions of dollars on interest when our bonds are cashed."

Moody's Investors Service performs financial research and analysis on commercial and government entities.  The company also ranks the credit-worthiness of borrowers using a standardized ratings scale.  The company has a 40 percent share in the world credit rating market.

"A representative from Moody's came to the district last week and performed an audit," Reid said.  "They liked what they saw, and upgraded our bond rating.

"The auditors liked the way we operated the district, the way we build buildings and were impressed with our fiscal planning and management," he added.  "We are always glad when auditors recognize our hard work, especially when it pays off."