STOCKTON — Delta College has earned another strong vote of confidence from the financial community, positioning the College to make the most of taxpayer dollars as the voter-approved Measure K bond program moves into the construction phase.
Moody's Ratings recently assigned Delta College an Aa2 credit rating with a “Positive” outlook, a designation that can help the College borrow at lower interest rates and stretch Measure K bond dollars further.
The rating comes just months after Fitch Ratings reaffirmed Delta College's AA- credit rating with that agency, providing additional independent validation of Delta’s fiscal strength.
The most recent Moody's Aa2 rating is among the highest ratings awarded to public institutions and reflects the agency's assessment of Delta's strong financial position, healthy reserves, growing enrollment, and sound management practices.
The new rating applies to approximately $130 million in upcoming Measure K bond issuances, as well as the refinancing of $38 million in existing debt from the previous Measure L bond. The refinancing alone is expected to save taxpayers approximately $3.6 million.
"This rating once again affirms the strong financial foundation of Delta College and the responsible stewardship of taxpayer resources," said Superintendent/President Dr. Lisa Aguilera Lawrenson. "Receiving recognition from two independent rating agencies this year demonstrates that the College is well-positioned to deliver on the promises we made to voters through Measure K while maintaining long-term fiscal stability."
"We are committed to ensuring every Measure K dollar is invested wisely and transparently," said Board of Trustees President Dr. Charles Jennings. "Strong credit ratings help us maximize the value of taxpayer investments and reinforce the community's trust in the College's financial management."
The Moody's rating comes as Delta College continues planning and implementation efforts for Measure K, a $598 million facilities bond approved by voters in November 2024. Priority projects include a permanent building at the South Campus at Mountain House, campus information technology improvements, energy-efficiency projects, and public safety training facilities.
The College anticipates breaking ground later this month on its first Measure K project, a parking lot improvement and solar energy project that will enhance campus infrastructure while generating long-term energy savings.
Strong reserves strengthen financial stability
Both recent reviews highlight Delta’s consistent practice of maintaining healthy reserves — essentially the College’s financial safety net — above the minimum levels needed to support a strong credit profile. Keeping these reserves strong reflects disciplined financial management and provides an important cushion against unexpected costs or economic shifts.
A higher credit rating also directly lowers the College’s borrowing costs when issuing bonds. Investors view highly rated districts as stable and low risk, which allows Delta to secure more favorable interest rates.
Even small reductions in interest rates can translate into significant long-term savings. That means more dollars can be directed toward much-needed facilities improvements and capital projects instead of interest payments.
Strong ratings also attract a wider pool of investors and increase demand for District bonds, further helping keep borrowing costs down.
About the Moody’s ratings
More information on the Moody’s rating is available here: Moody's Ratings assigns Aa2 to San Joaquin Delta CCD, CA's GOs; assigns positive outlook
About the Fitch Ratings
More information on the Fitch rating is available here: https://www.fitchratings.com/research/us-public-finance/fitch-revises-san-joaquin-delta-ccd-ca-outlook-to-stable-affirms-go-at-aa-04-02-2026
About Measure K
More information about Measure K is available here: deltacollege.edu/measure-k
