Centennial School District receives strong Aa2 rating from Moody’s, reflecting sound financial management intended to save taxpayer dollars

Warminster, PA, September 25, 2025 – Centennial School District (CSD) is proud to announce that Moody’s Investors Service has assigned a strong Aa2 general obligation limited tax (GOLT) rating to the district’s Series A, B, and C of 2025 General Obligation Bonds. A school district’s bond rating is similar to an individual’s credit score in that both reflect financial reliability and trustworthiness. This rating affirms the district’s healthy financial position and prudent fiscal management.

Moody’s rating system, widely recognized by investors and financial institutions, provides an independent assessment of creditworthiness. Ratings range from Aaa (the highest level of creditworthiness) to C (substantial risk of default). The median rating for public K-12 school districts nationwide, as well as in Pennsylvania, is Aa3. Centennial School District’s Aa2 rating — one notch above the median — underscores its robust financial health. A higher rating enables the district to borrow at lower interest rates, ultimately saving taxpayer dollars.

The Aa2 rating reflects strong financial metrics, including a restricted and unrestricted fund balance ratio equal to 20.4% of total revenue at the end of fiscal year 2024. Moody’s noted that a “material decline of reserves and liquidity to under 15% of revenue could lead to a ratings downgrade.” The district’s ratio, which includes the General Fund balance and the Debt Service Fund but excludes the Capital Fund, serves as a key indicator of financial stability. Centennial’s total 2024 fund balance of $29.6 million is composed of:

• $16.9 million in the Debt Service Fund
• $2.5 million in the Committed General Fund
• $10.2 million in the Unassigned General Fund

Importantly, the district’s unassigned fund balance remains within state regulations, which require it to stay below 8% of total revenue.

Proceeds from the bond sale will be used to refund 2017 bonds at a reduced rate, saving the District more than $890,000 by lowering annual debt service expenses. Combined with last year’s refinancing, total savings now approach $5 million.

In issuing this rating, Moody’s cited the district’s healthy financial position, strong fund balance, positive enrollment trends, a stable tax base, and household income levels at 120% of the national average. The district’s leverage — debt relative to revenue — is expected to remain moderate and manageable.

“This rating reflects our ongoing commitment to sound financial management and demonstrates our ability to meet obligations while saving taxpayer dollars and investing in our students’ success,” said Superintendent Dr. Abram Lucabaugh. “We are pleased that Moody’s has recognized both our efforts and the financial strength of the district. I also want to thank our financial team for their continued dedication and hard work.”

About Centennial School District

Centennial School District is located in Bucks County, Pennsylvania, and serves over 5,000 students across six schools. The district is committed to providing high-quality education and ensuring the success of every student.