Austin, TX – September 25, 2006 – Moody’s Investors Service has upgraded the Austin Community College District’s bond ratings citing the following: the college’s improved operating performance, an expanded tax base, steadily increasing enrollments, and a strong market position in what the financial group describes as the “vibrant Austin area”. Moody’s increased ACC’s revenue bonds from A2 to A1, and its tax supported general obligation bonds from Aa2 from Aa3.

“An improved bond rating is an indication of ACC’s growing financial strength and favorable outlook for the future,” said Ben Ferrell, vice president for Business Services. “Higher bond ratings allow the district to issue future bonds at lower interest rates saving students and taxpayers money in funding capital improvements and campus expansions.”

Moody’s rating update for ACC also noted recent developments such as a $2 million increase in the district’s net assets and modest debt levels. According to Moody’s, ACC still has room for improvement noting the district has a capped tax rate of .09/$100, a liability providing minimal flexibility for the future.