Moody's Investors Service has upgraded the Island Trees Union Free School District's rating to A1 which had already been established at a high rating of A2 for a number of years. Moody's Investors Service has assigned an A1 rating to Island Trees Union Free School District's (NY) $3.4 million School District Refunding Serial Bonds, 2008. At this time, Moody's has also upgraded the rating on the district's $14.4 million outstanding parity debt to A1 from A2. According to Moody's, the upgrade is due to the district's excellent financial condition and the expectation that the "healthy financial position (is) expected to remain sound." The Moody's report included the following:

"The rating upgrade reflects the district's well-managed financial position supported by a history of positive operating results and healthy reserve levels. The A1 rating also incorporates the district's stable tax base and a manageable debt position. Proceeds from the sale will refund bonds originally issued in 1997. The refunding is expected to generate a net present value savings of approximately 6.39 percent of refunded principal, without extending the maturity of the debt."

Board of Education President Ken Rochon stated that he was pleased with the report, but not surprised. "We have strived to maintain an excellent financial position and Moody's has confirmed that we continue to meet this goal." Superintendent James Parla echoed these sentiments.