Moody's assigns Aa2 rating to Northeast Iowa Community College's bonds and certificates

Thursday, August 6, 2020

The Aa2 rating reflects the College's large, diverse tax base in the Dubuque metro area, stable financial operations with strong reserves and the moderate debt and pension burdens.

NEW YORK—Moody's Investors Service assigned a Aa2 rating to Northeast Iowa Community College’s $12.6 million General Obligation School Bonds, Series 2020 and $2.8 million Taxable Industrial New Jobs Training Certificates, Series 2020-1. Moody's maintains the Aa2 rating on $38 million of the College's outstanding general obligation unlimited tax (GOULT) debt and $2.7 million of certificates of participation (COPs).

The Aa2 rating reflects the College's large, diverse tax base in the Dubuque (Aa3) metro area, stable financial operations with strong reserves and the moderate debt and pension burdens.

Moody’s regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The coronavirus crisis is not a key driver for this rating action. The investor’s service does not see any material immediate credit risks for Northeast Iowa Community College. The College's primary revenue source is property taxes which are expected to remain stable. There are no state aid reductions for community colleges in the state of Iowa's proposed fiscal 2021 budget. However, the situation surrounding the coronavirus is rapidly evolving and the longer term impact will depend on both the severity and duration of the crisis.

See additional information and methodology from Moody’s Investors Service.