San Jacinto College receives rating upgrade from S&P

Apr 2, 2024Amanda Fenwick
General San Jacinto College news graphic

PASADENA, Texas – S&P Global Ratings has reviewed the San Jacinto College General Obligation Bonds and has increased the College’s long-term rating from “AA” to “AA+.”

The raised rating reflects S&P’s view of the College’s maintenance of solid operating margins, cash position, and revenue base, driven by favorable enrollment trends, along with sizable tax base growth, which further supports its financial flexibility.

“We are proud of the latest positive ratings achieved by San Jacinto College,” said Teri Zamora, vice chancellor for fiscal affairs. “Our Board of Trustees, College leadership, and employees have worked to ensure the fiscal health of our institution, through conservative financial planning and budgeting, and this is a direct reflection of that effort.”

The rating reflects S&P’s view of San Jacinto College’s strong enterprise risk profile and strong financial risk profile. The enterprise risk profile reflects the district's sizable enrollment base, which has strengthened post-pandemic, sizable service area population due to its proximity to many employment opportunities, and experienced and proactive leadership team. The financial risk profile reflects the College’s trend of positive operating margins and growing revenues that are sufficient to offset its rising expenditures. The rating also reflects the College’s material taxing

base, with consistent assessed value (AV) growth, and diverse taxpayer base, all of which provide material support for both the district's operations and debt obligations.

About San Jacinto College

Surrounded by monuments of history, evolving industries, maritime enterprises of today, and the space age of tomorrow, San Jacinto College has served the people of East Harris County, Texas, since 1961. The College is one of the top 10 community colleges in the nation as designated by the Aspen Institute and was named an Achieving the Dream Leader College of Distinction in 2020. The College is a Hispanic-Serving Institution that spans five campuses, serving approximately 41,000 credit and non-credit students annually. It offers more than 200 degrees and certificates across eight major areas of study that put students on a path to transfer to four-year institutions or enter the workforce. The College is fiscally sound, holding bond ratings of AA+ by Standard & Poor’s, and Aa2 by Moody’s.