Moody’s Ratings assigns A1 issuer rating to Spokane Pue IES District, WA confirms bonds at A1

Moody’s Ratings assigns A1 issuer rating to Spokane Pue IES District, WA confirms bonds at A1

Moody’s Assigns Aa1 Rating to Spokane County School District 356 (Central Valley), WA

Moody’s Investors Service has reaffirmed an Aa1 issuer rating for Spokane County School District 356 (Central Valley), Washington, reflecting the district's ability to meet debt obligations through its general obligation unlimited tax (GOULT) bonds. The rating, which aligns with the district's full faith and credit pledge and unlimited property tax authority, underscores a stable financial position despite challenges in financial reporting transparency.

The district's GOULT bonds, secured by a dedicated property tax stream and enhanced by a county-provided lockbox for debt service, remain supported by the Washington State School Bond Guarantee Program, which pledges to cover shortfalls in debt payments. However, the district's financial reporting practices limit credit visibility, as they follow Washington state's Regulatory Basis of Accounting, which excludes disclosures on post-employment benefits, capital assets, and depreciation.

Economic and demographic factors also influence the rating. While resident income and property value per capita are average, enrollment declined in fiscal 2021 due to the pandemic, though long-term trends remain positive. Moody's notes that long-term liabilities and fixed costs are manageable, but any significant increase or erosion of economic indicators could pressure the rating.

At the state level, Washington's general obligation bonds maintain a strong triple-A (Aaa) rating from Moody's, with a stable outlook. This contrasts with the district's Aa1 rating, highlighting variations in credit quality between state and local entities.

For Spokane County School District 356, maintaining or improving its credit profile will depend on financial reporting enhancements, enrollment stability, and prudent management of long-term obligations. Investors are advised to monitor these factors, as well as broader economic shifts, for potential rating implications.

(https://finance.yahoo.com/news/spokane-county-d-356-central-233307470.html): Moody’s downgrade and rationale, March 2021
(https://tre.wa.gov/financing-and-debt/state-debt-information/ratings-reports): Washington State Treasurer's Office, July 2025 ratings reports