Moody’s Ratings has affirmed Kent School District’s Aa3 issuer and general obligation unlimited tax (GOULT) bond ratings, reflecting continued confidence in the district’s long-term financial stability and creditworthiness despite ongoing financial challenges facing school districts across Washington state. The agency also recognized that district leaders have implemented significant expenditure reductions, resulting in a fiscal 2027 budget that is nearly balanced.

 “This rating affirmation reflects the disciplined work underway to maintain the district’s financial stability while continuing to serve students and families,” said Superintendent Israel Vela.  “Although school districts across the state continue to face significant funding challenges, we have taken proactive steps to align our budget with enrollment and revenue realities while protecting educational opportunities for students.” 

In its July 16 rating action, Moody’s cited the district’s strong local economy, above-average resident income levels, high assessed property values, and very low debt and pension burdens as key strengths supporting the Aa3 rating. The agency also recognized the district’s efforts to address budget pressures through ongoing expenditure reductions and long-term financial planning. 

“In a climate of difficult school funding conditions, Kent School District has managed to maintain its strong Aa3 credit rating with Moody’s Ratings.   “Moody’s has downgraded many Washington school district credit ratings over the past two years as State funding has put pressure on districts’ finances” said Mark Prussing with Educational Service District 112, the district’s financial advisor.  “Kent leadership has taken actions and made the difficult decisions necessary to maintain a solid financial position.  However, there is more work ahead as funding pressures are expected to continue in the coming years.” Said Mr. Prussing. “The affirmation of the current rating is a positive result for Kent School District and recognition of the hard work being done.”

 Moody’s noted that Kent School District’s available general fund balance declined in fiscal 2025 and is expected to decrease further in fiscal 2026 due in part to rising special education costs and enrollment levels that were lower than budgeted. 

METHODOLOGY

The principal methodology used in these ratings was US K-12 Public School Districts published in June 2026 and available at https://ratings.moodys.com/rmc-documents/466688. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.