Moody's affirms Palomar College bond rating and upgrades outlook

SAN MARCOS – Following a review of financial health at Palomar College, Moody's Investors Service affirmed the college's Aa2 bond rating and revised its outlook from negative to stable.

Moody's published its findings on Wednesday, July 6. Its report included the following observations:

"The Aa2 rating reflects the district's extremely large and diverse tax base that is well positioned for continued growth, in addition to favorable resident income and wealth levels. The rating also reflects the district's solid financial position and management's commitment to improved fiscal policies and procedures, which support sound operations going forward."

"The stable outlook reflects our expectation that financial reserves (at Palomar College) will remain healthy and long term liabilities will remain manageable, supported by improved fiscal policies and procedures and a favorable current state funding environment."

Dr. Star Rivera-Lacey, superintendent/president of the Palomar Community College District, called the positive Moody's findings a sign that Palomar remains fiscally strong and is positioned for growth.

"This is one of many signs that Palomar College has held strong through the two-year COVID-19 crisis. We will continue to focus on strengthening our financial health," said Rivera-Lacey. "We are deeply grateful to taxpayers for their confidence in the district as we work to ensure student success."

The US Local Government General Obligation Debt published in January 2021 was the principal methodology used in evaluating the rating. The methodology is available at https://ratings.moodys.com/api/rmc-documents/70015, or https://ratings.moodys.com.

Submitted by Palomar College.