New York, March 31, 2025 -- Moody's Ratings (Moody's) has assigned Aa3 ratings to Columbia Gorge Community College District, OR's General Obligation Bonds, Series 2025A (College Facility Improvements) and General Obligation Bonds, Series 2025 (Federally Taxable Refunding) in the estimated par amount of $6.03 million and $6.97 million, respectively. We have also assigned enhanced Aa1 ratings to the Series 2025A&B bonds based on the bonds' qualification to the Oregon School Bond Guaranty Program. Concurrently, we maintain the district's Aa3 ratings on the district's outstanding general obligation (GO) bonds. Post these current issuances, the district
will have approximately $16.7 million in total debt outstanding.
RATINGS RATIONALE
The Aa3 underlying rating reflects the steady growth of the tax base ($14 billion in fiscal 2025) and strong property wealth measures amid wealth indices, with median family income (MFI) at 82.6%, remaining below the national average. The district's financial position improved in fiscal 2023 with reserves and liquidity at 36.3% as a percent of operating revenues, which was primarily driven by increases in state and
federal grants. Unaudited results for fiscal 2024 show a slight moderation of their financial position, with total general fund reserves at approximately 26%, due to the final spend down of one-time funds along with transfers out to pay debt service on outstanding Full Faith and Credit (FF&C) obligations. Management projects continued moderation of reserves in fiscal 2025 however transfers out of the general fund will decrease as the new Series 2025B will defease the FF&C obligation, Series 2019.
Favorably, the district has seen a positive enrollment trend in recent years growing above pre-pandemic levels. Management expects enrollment to continue to grow through 2028, primarily due to trades certifications and course offerings. The district's debt and net pension liability will remain manageable as they have exhausted their GO authorization and have no plans to seek voter approval for additional authorization in the next 3-5 years.
The Aa1 enhanced rating of the Oregon School Bond Guaranty Program reflects the State of Oregon's (Aa1 stable) full faith and credit and unlimited taxing power which is pledged to guarantee qualified bond debt service for school districts when due. Key aspects of the Oregon School Bond Guaranty Program include third party notification of any unpaid debt service and favorable state oversight.
RATING OUTLOOK
We do not assign outlooks to local governments with this amount of debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Material improvement in wealth indices such as resident income
- Continued maintenance of current operating reserves and liquidity in excess of 30%
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Significant decline in enrollment leading to operational pressures
- Deterioration of operating reserves and liquidity to below 15% of revenues
- Material increases in debt and unfunded pension liabilities
PROFILE
The district provides collegiate education services in Hood River and Wasco counties in rural north-central Oregon, serving an estimated population of 50,800. Fiscal 2025 enrollment of full-time equivalents (FTEs) is 951 students with a total headcount of 3,969 students.
METHODOLOGY
The principal methodology used in these underlying ratings was US Special Purpose District General Obligation Debt published in February 2025 and available at https://ratings.moodys.com/rmc-documents/437940 .
The principal methodology used in these enhanced ratings was Guarantees, Letters of Credit and Other Forms of Credit Substitution Methodology published in July 2022 and available at https://ratings.moodys.com/rmc-documents/386295 . Alternatively, please see the
Rating Methodologies page on https://ratings.moodys.com for a copy of these methodologies.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on
https://ratings.moodys.com/rating-definitions.
For any affected securities or rated entities receiving direct credit support/credit substitution from another entity or entities subject to a credit rating action (the supporting entity), and whose ratings may change as a result of a credit rating action as to the supporting entity, the associated regulatory disclosures will relate to the supporting entity. Exceptions to this approach may be applicable in certain
jurisdictions.
For ratings issued on a program, series, category/class of debt or security, certain regulatory disclosures applicable to each rating of a subsequently issued bond or note of the same series, category/class of debt, or security, or pursuant to a program for which the ratings are derived exclusively from existing ratings, in accordance with Moody's rating practices, can be found in the most recent Credit Rating Announcement related to the same class of Credit Rating.
For provisional ratings, the Credit Rating Announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
Moody's does not always publish a separate Credit Rating Announcement for each Credit Rating assigned in the Anticipated Ratings Process or Subsequent Ratings Process.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see https://ratings.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the issuer/deal page on https://ratings.moodys.com for additional regulatory disclosures for each credit rating.
Natalie Ramos
Lead Analyst
Eric Hoffmann
Additional Contact
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A
JOURNALISTS: 1 212 553 0376