Moody’s Investors Service assigned an Aa2 rating to Northeast Iowa Community College’s $10 million General Obligation School Bonds, Series 2021, and $3.5 million Taxable Industrial New Jobs Training Certificates, Series 2021-1.Moody’s maintains the Aa2 rating on the College’s outstanding general obligation unlimited tax (GOULT) debt and certificates of participation (COPs).
The Aa2 rating reflects the College’s large and diverse tax base with average resident income levels and a healthy financial profile supported by strong, growing reserves despite a declining enrollment. The rating also reflects a low debt burden, low pension, and other post-employment benefit liabilities. Strong reserves and the minimal impact to major revenue sources, including property taxes and state operating aid, are important mitigants as the College continues to navigate the impacts of the coronavirus.
The Series 2021 bonds will fund improvements at the college’s two campuses including remodeling of buildings at the college’s Peosta and Calmar campuses. The Series 2021-1 certificates will finance new jobs training programs for approximately 300 employees at seven companies that have entered into job training agreements with the college pursuant to Iowa’s Industrial New Jobs Training Act.