McAllen ISD has just earned an exceptional credit rating which will help the district maximize the use of its $335 million in school bond funds on facilities, programs and other measures that will benefit its students for years to come.
Dallas-based Moody’s Ratings has affirmed McAllen ISD as an Aa2 issuer.
“In the world of school business and finance, this rating is a really big deal,” McAllen ISD Superintendent Dr. René Gutiérrez said. “It directly impacts our ability to get a good interest rate on our bonds.”
In May, voters approved a $335 million bond for McAllen ISD – the largest bond in McAllen ISD history. The high rating from Moody’s paves the way for the district to acquire a large portion of the bond (about $100 million) to get the ball rolling on projects to modernize and increase safety in the school district.
The district plans to issue its remaining $235 million of authorization over the next three to four years. The bond will address facility upgrades, program expansions, modernization of learning spaces along with safety and security.
Major school improvements not only benefit students but can also attract high-quality teachers and increase the number of families who choose to bring their children to McAllen ISD.
“The Aa2 issuer rating reflects the district’s strong financial profile, supported by healthy available fund balance and net cash ratios that are projected to remain stable,” Moody’s wrote in a press release on McAllen ISD.
The principal methodology used for the rating was “US K-12 Public School Districts” published in June 2026 and available at https://ratings.moodys.com/rmc-documents/466688.
McAllen ISD has won many major awards in recent years for its sound fiscal practices. These include:
· The Certificate of Achievement in Excellence in Financial Reporting by Government Finance Officers Association of the United States and Canada (GFOA) for its Annual Comprehensive Financial Report (ACFR) for 14 straight fiscal years (2010-23). The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting and its attainment represents a significant accomplishment by a government and its management.
· Earning the state’s highest mark by TEA’s School FIRST (Financial Integrity Rating System of Texas), 22 times in 23 years (including 18 perfect scores, 4 in a row through 2025).
· Recognized for excellence in budget presentation with the Meritorious Budget Award (MBA) for the 2025–26 budget year. McAllen ISD has been recognized for its comprehensive budget presentation from 2018-26. The award has come from the Association of School Business Officials International (ASBO) for budget years 2017-18 through 2025-26 while the district had previously received the Distinguished Budget Presentation Award by the Government Finance Officers Association (GFOA) for budget years 2015-17.
· Earned Transparency Stars from the Texas Comptroller of Public Accounts in Debt Obligations for exemplary efforts in creating financial transparency around public debt and the Transparency Star in the area of traditional finances for exemplary efforts in creating financial transparency around public services and spending decisions.
· The Texas Association of School Business Officials (TASBO) has presented the Award of Merit for Purchasing Operations to McAllen ISD nine times. The Award of Merit recognizes Texas school districts that are committed to following professional standards in the acquisition of goods and services. McAllen ISD has won this award in 2014-16 and 2021-26.
· McAllen ISD has earned the Achievement of Excellence in Procurement® (AEP) from the National Procurement Institute, Inc. (NPI) 13 times in the past 14 years. In 2026, the district was one of just 30 school districts in the United States or Canada to be selected McAllen ISD also won the NPI award in 2013-18 and 2020-25.
About McAllen ISD
McAllen ISD is a 2025 winner of the state’s highest rating of an “A” grade and a 2025 winner of the state’s Postsecondary Readiness Distinction. The district is home to 31 campuses and approximately 19,500 students. To learn more about McAllen ISD’s schools and programs, contact Student Outreach at 956-687-MISD (6473).