City College earns grade ‘A’ credit rating

Chancellor Arthur Tyler (Photo by Yesica Prado)
Chancellor Arthur Tyler (Photo by Yesica Prado)
Chancellor Arthur Tyler (Photo by Yesica Prado)

By Michael Burkett

The Guardsman

The nation’s top credit rating agencies have upgraded their outlook on City College that translates to $48.7 million in savings on borrowing costs.

Moody’s, Fitch and Standard and Poor collective gave City College the best ratings in four years, citing increased confidence in the college’s revised financial practices and policies According to an April 14 news release from the chancellor’s office.

“We’ve made significant progress here at City College and it is gratifying to know that this is starting to be recognized by our ratings agencies,” said Ron Gerhard, City College’s vice-chancellor of finance and administration.

Board of trustees President Rafael Mandelman also praised the rating upgrade.

“Anytime we (City College) can save money, that’s a good thing. It will mean significant savings when the school borrows money,” Mandelman said.

The college district refinanced approximately $271.8 million in outstanding general obligation bonds, according to a spokesperson for Jeff Hamilton, City College’s director of marketing and public information. The refinanced bonds will lower the district’s debt servicing costs and ultimately benefit San Francisco property taxpayers.

The administration assembled a refinance team that includes Chancellor Arthur Tyler, Gerhard, Morgan Stanley, KNN and Stradling Yocca Carlson & Rauth.

“I’m incredibly proud of the work our administrators, staff and faculty are doing … an effort that’s clearly paying off for the college as a whole,” Tyler said.