Licking Heights' bond rating gets upgrade, cites 'strong financial position'

Moody’s Investor Services recently upgraded Licking Heights Local School District’s bond rating to Aa2 and the district’s certificates of participation (COPs) to Aa3.

Superintendent Philip Wagner spoke positively of the bond rating upgrade, and its potential impact on the bond issue approved by voters in May that will fund a number of new facilities’ construction, as well as, the high school’s coming expansion to meet growing enrollment needs.

"It is exciting that we received an upgrade," Wagner said. "Although the market is inconsistent, the upgrade may help us earn a lower interest rate that should have a significant impact upon the $66 million in monies that will be sold to the public."

It is, according to Wagner, the district’s highest bond rating since 2014.

District Treasurer Todd Griffith said, "During such a difficult and volatile time to issue bonds, we were fortunate and grateful to receive an upgrade!"

In a summary regarding the upgrades, Moody’s observed of the district, "Licking Heights maintains a very strong financial position, supported by growing enrollment and an expanding tax base. The district benefits from a limited reliance on voters for operating levies and above-average resident wealth and income. These credit strengths are balanced against the district's above-average leverage and fixed-cost ratio."

Moody’s cited Heights credit strengths, noting its "very strong financial position." Further, Moody’s said Heights, "is a rapidly growing district with positive enrollment trends. Licking Heights LSD benefits from its favorable location within the Columbus metropolitan area and a large amount of developable land which will foster further growth.

Moody’s district summary continues, "The tax base is largely residential (72% of assessed value) and has averaged strong annual average growth of 9.6% over the past five years. Commercial development remains strong as the district is home to thriving business park developments that span a variety of sectors including information technology, health care and consumer product manufacturing, particularly within the City of New Albany."

Among those commercial developments singled out by Moody’s are Amazon and Amgen, Inc.

"In spring 2022, operations began at Amazon's (A1 stable) new fulfillment center, which is located within the district and is estimated to create a minimum of 1,000 jobs by the end of 2024," Moody’s stated.

"Amgen Inc., …a US-based global biotechnology company, recently broke ground on a $365 million biomanufacturing facility in New Albany. The new facility is expected to be operational in 2024 and will result in about 400 new jobs. Approximately 75% of the new facility will be located within the district and is estimated to generate $400,000 in additional annual revenue for Licking Heights LSD. In May 2022, AmplifyBio, a biotechnology contract research organization, announced it will invest roughly $150 million in a new facility within the district."

On June 1, Moody’s upgraded the district's issuer and general obligation unlimited tax (GOULT) ratings to Aa2 from Aa3 and its certificates of participation (COPs) to Aa3 from A1.

This article originally appeared on Newark Advocate: Licking Heights' bond rating gets upgrade, cites financial position