Moody's Ratings assigns Aa2 to Grossmont-Cuyamaca CCD, CA's GOS; outlook stable

Moody’s Investors Service has assigned an Aa2 rating to the General Obligation Bonds (GO) of the Grossmont-Cuyamaca Community College District (CA), including the Series 2021C (Tax-Exempt) and 2021 General Obligation Refunding Bonds (Federally Taxable), with a stable outlook according to the rating analysis. The rated issues include $100.0 million in Series 2021C bonds and $68.3 million in refunding bonds, maintaining Moody’s Aa2 rating on the district’s outstanding general obligation unlimited tax (GOULT) debt, totaling $290.4 million as reported in the assessment.

The rating reflects the district’s robust financial profile, supported by a diverse and growing tax base tied to the San Diego metropolitan economy, conservative fiscal management, low debt burden, and moderate adjusted net pension liability according to the financial analysis. Legal security for the bonds is ensured through ad valorem property taxes, unlimited in rate and amount, with collections administered by San Diego County (Aaa stable) as noted in the credit assessment.

A stable outlook underscores expectations of sustained tax base growth and financial stability. Upward rating movement could result from increased financial reserves or reduced ANPL, while downward risks include declining cash balances or rising ANPL according to Moody’s outlook. Proceeds from Series 2021C will fund capital projects at both Grossmont and Cuyamaca Colleges, including student services facilities and academic complexes, while refunding bonds aim to reduce borrowing costs as detailed in the bond analysis.

The district serves ~496,000 residents across eastern San Diego County, operating two colleges with a combined 15,784 full-time equivalent students projected for fiscal 2021 according to enrollment data. Moody’s applied its US Local Government General Obligation Debt methodology to assess the ratings as described in the methodology.