Moody’s ratings assigns Aa2 to Centennial School District, PA’s Series of 2026 GOs
WARMINSTER, PA – April 13, 2026 – Moody’s Ratings (Moody’s) has assigned a Aa2 general obligation limited tax (GOLT) rating to Centennial School District, PA’s proposed $9.5 million General Obligation Bonds, Series of 2026. We maintain the district’s Aa2 issuer, Aa2 general obligation unlimited tax (GOULT), and Aa2 GOLT ratings on the district’s outstanding debt. Post-issuance, the district will have an estimated $93 million in debt outstanding.
The Aa2 issuer rating recognizes the district’s healthy reserves with an available fund balance ratio at 19% of revenue in fiscal 2025, supported by a consistent willingness to raise local revenue. Finances are poised to remain relatively stable through fiscal 2026, as management projects level general fund reserves and a small use of accumulated debt service fund reserves for capital projects. The tax base remains robust, characterized by above-average resident income (adjusted median household income 120% of the national median) and wealth (full value per capita of $118,000).
Enrollment has grown by an average 0.3% annually over the past three years. Management expects enrollment growth to accelerate closer to 0.8% annually over the next five years given current demographic trends and stable private and charter school competition. The long-term liabilities ratio will remain highly manageable at under 170% of annual revenues following the current issuance. The district reports no additional debt plans over the next five years.
For more information, please contact: [email protected].
