Provo district gets an A1 bond rating

PROVO — The Provo School District received an A1 bond rating Thursday from Moody's Investors Service.

"They removed all the negative language and gave us a solid A1 rating," Provo School District business administrator Kerry Smith said. "And it was very positive about the management of the district. We're very pleased."

The district's prior rating had been A1 with a watch, because fund balances were decreasing in 2004 when the district sought a rating to refinance bond debt.

Moody's bond ratings range from AAA to B3. The higher the bond rating, the lower the interest rate. That's less money the district — and taxpayers — will have to repay investors in interest.

The district sought a bond rating because it will issue $9.4 million in bonds on Sept. 12. Zions Financial will conduct the bids in Salt Lake City, and the market will determine the interest rate at that time.