Utica City School District Receives Major Credit Rating Upgrade from Moody’s

 

May 19, 2026
FOR IMMEDIATE RELEASE

 

Utica City School District Receives
Major Credit Rating Upgrade from Moody’s

Milestone Upgrade Marks Five-Step Improvement
in UCSD’s Credit Standing Since 2015

 

UTICA, NY—The Utica City School District (UCSD) has received a major credit rating upgrade from Moody’s Ratings, raising UCSD’s issuer and general obligation bond rating from A1 to Aa3. The latest upgrade reflects years of steady operational and fiscal progress and places UCSD in a high-grade rating category reflecting strong long-term stability.

Credit ratings are used by investors and financial institutions to evaluate the strength and stability of organizations, including school districts. Higher ratings indicate responsible fiscal management and a greater ability to meet long-term obligations.

For school districts, stronger credit ratings can reduce borrowing costs for major capital and construction projects, helping lower long-term interest expenses and save taxpayer dollars over time.

According to Moody’s, the upgrade reflects the “continuing improvement in the District’s financial operations over the past five fiscal years, which have resulted in significant fund balance growth.”

Moody’s cited UCSD’s strong reserves, conservative budgeting practices, and a long-term management approach as key reasons for the upgrade. Strong reserves help school districts maintain stability, manage unexpected costs, and meet obligations efficiently.

“This upgrade reflects years of disciplined work across our organization,” said Utica City School District Superintendent Dr. Christopher Spence. “Progress like this takes patience, experience, long-term planning, and a shared commitment to building long-term stability for UCSD. I’m proud of the work our staff, leadership team, and Board of Education have done to strengthen our foundation while continuing to invest in opportunities for students.”

The latest increase continues a decade-long climb in UCSD’s credit standing:

• 2015: Baa3
• 2018: Baa2
• 2019: Baa1
• 2020: A3
• 2024: A1
• 2026: Aa3

UCSD’s current Aa3 rating represents a five-step improvement from where the school district stood in 2015.

President of the Utica City School District Board of Education, Joseph Hobika, also commented on the news, “We’re proud of the steady work that has taken place across UCSD over many years. The collective efforts of our leadership team, staff, and Board of Education have helped position UCSD for long-term success and continued progress.”

“Reaching the Aa3 category is a major milestone for UCSD,” said Chief Financial Officer Heather Mowat. “It speaks to years of careful planning, conservative budgeting practices, and operational discipline across the organization. Our goal has been to strengthen our position in a way that supports students today while also protecting long-term stability for the future.”

Moody’s also highlighted UCSD’s exceptionally high state building aid reimbursement rate, which helps support major capital improvement projects while helping limit long-term costs to local taxpayers.

 

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