DISD Credit Rating

Standard & Poor's has dropped the DISD credit rating from AA- to A+ June 9, 2009. "Fitch Rates Dallas ISD's (Texas) $105MM GOs 'AA-'; Outlook Remains Negative"(www.smartbrief.com, www.reuters.com)That's no surprise. The highest possible rating is AAA. (In your dreams, Eliu!)

Can anyone OUTSIDE of the DISD explain the $105 million refund and what that's about? If anyone in the financial sector of the DISD could explain it, they probably wouldn't be in the financial mess they created!

I have also been trying to find out if anyone else has been suckered into buying the bonds. The last information that I found is showed that of the $500million in bonds that went on sale, only $400million were sold. The Texas Education Agency had to co-sign to guarantee that the district would payback the bond holders.

Thanks.

Yeah that's no surprise and they aren't the only ones.

DISD and Queensland Australia are in the same boat among others.

Monroe County

S&P Credit-Rating Downgrades Would Hit California Schools Hard.

The economic crisis hits everyone.

The intention is to bring USA back to 3rd world status so that a new economy takes it's place based on the "Amero."

DISD Credit Rating. Why is DISD refunding $105million & to whom?

STILL looking for an answer to "DISD Credit Rating". The economy has nothing at all to do with the DISD finance department knowing absolutely nothing about finance and how to manage the money of the District. They seem to sit daily with one thumb in their collective mouths and the other thumb up their collective behinds and frequently changing the positions of the two thumbs!

LOL that's gross

Your question is fine and dandy; however, the visual is somewhat gross. Anyway, I'm just saying that it's easier to discover the discrepancies in the financial mismanagement when the well runs dry.

It's how the price of tea in China is related to the way China is today.
http://answers.yahoo.com/question/index?qid=20090330200610AAA7zh9

In America, instead of tea, it's the price of real estate.

To say that the economy has nothing to do with the DISD financial mismanagement is a shortsighted statement.

Subprime mortgage crisis

The municipal bond market was affected by the subprime mortgage crisis. During the crisis, monoline insurers that insured municipal bonds incurred heavy losses on the collateralized debt obligations (CDOs) and other structured financial products that they also insured. Consequently, the credit ratings of these monoline insurers were called into question, and the prices of municipal bonds fell.

So DISD has 500 million in bonds, and they sold 400 million. That means DISD has 100 million unsold bonds.

Sounds to me like they didn't sell enough bonds to keep the district running properly or to pay staff, build more schools, etc., and are stuck with 100 million dollars worth of bonds that they still need to sell.

So why aren't the bonds selling? Because the economy is bad. Duh. People aren't gonna buy bonds now when food and gasoline are so expensive.

http://emma.msrb.org/EducationCenter/EducationCenter.aspx

So basically, no-one is buying the bonds because people can be stingy in a bad economy and to add insult to injury; the credit rater's are saying that DISD bonds aren't trustworthy because the insurance company DISD is using to back those bonds isn't liquid enough to cover DISD in case the District falls short of it's repayment obligations. Consequently, DISD can't build more schools, cover operational costs and can't pay staff because no one is willing to buy the District's bonds. A self-fulfilling prophesy by the credit raters leading to a downward spiral into oblivion.

So securities are apparently what you make of them.
If everyone has faith in them then they are worth something.
If no one trusts anyone.. then someone is left holding the bag and this trickles down back to the consumer.

I wouldn't buy them myself. I mean, how do you expect public school systems to make any profit when every dollar is scrutinized by the public and then sent to areas that needed them 2 years ago.

I may be wrong to assume that public school financials should be treated like any other business venture but that's what we are doing.

Medical Care and Education should be a right not a privilege. A healthy educated citizen is the basis of a free society. Without that.. you will have unhealthy decision making.