CHAMPAIGN, Ill. (Chambana Today) — Champaign Unit 4 School District has received a credit rating upgrade from Moody’s Ratings, a move district officials say reflects strong financial management and long-term stability.
Moody’s upgraded the district’s issuer and General Obligation Unlimited Tax rating to Aa1 and assigned the same rating to the district’s upcoming 2026 General Obligation Refunding School Bonds, which have a proposed par amount of $42.5 million. The upgrade applies to bonds issued to refinance a portion of the district’s 2017 debt tied to capital improvements approved by voters in a 2016 referendum.
District officials said the higher rating helped secure a lower interest rate during a competitive bond sale earlier this month, resulting in approximately $3 million in debt service savings for taxpayers. The bonds are expected to close in early January 2026.
According to Moody’s, the upgrade was driven by the district’s expanding tax and revenue base, growing student enrollment and stable financial position. Preliminary projections for fiscal year 2025 indicate a modest operating surplus, with available fund balances expected to reach about 43% of operating revenue.
Moody’s also cited rising property values, steady revenue growth and the district’s practice of quick debt repayment and strategic refinancing as factors supporting the higher rating. The agency assigned Unit 4 a stable outlook.
Champaign Unit 4 serves approximately 10,000 students in Champaign, Savoy and Bondville. Following the upcoming bond sale, the district will carry about $230 million in outstanding debt. District leaders said they remain committed to managing that debt responsibly while meeting current and future facility needs.
