July 22, 2025
Amid financial uncertainty in the higher education sector, Moody's Ratings (Moody's) has affirmed Johnson County Community College’s (JCCC) Aa1 issuer rating and Aa2 COPs rating. The outlook is stable.
Read the full press release from Moody’s Rating (log-in required). Visit Moody's rating symbols and definitions (PDF).
Ratings Rationale
The affirmation of the Aa1 issuer rating reflects the College's very strong operating environment. Property tax revenue is derived from a strong tax base in the Kansas City Metropolitan Area and accounts for more than 55% of operating revenue in fiscal 2024. Low debt and pension levels contribute to excellent cash and investments to adjusted debt and debt service coverage levels at 4.4x and 9.2x, respectively.
Wealth and liquidity levels will remain healthy, including moderate planned use of reserves for capital. Favorable demographics and a focus on workforce development have supported enrollment increases, a trend likely to continue in fiscal 2026. The College has seen a significant increase in part-time enrollment, which poses some risk in the face of potential changes to Pell eligibility for part-time students. There is also some exposure to federal grant cuts, though the school's strong margins help mitigate the effects on operating performance.
The College had approximately $49 million in outstanding debt as of June 30, 2024. The Aa2 rating of the COPs (Certificates of Participation) incorporates the College's overall credit quality, more essential nature of the assets, partially offset by the contingent nature of the security with appropriation risk.
Rating Outlook
The stable outlook is predicated on Johnson County Community College continuing to benefit from strong property tax and steady state funding. It is also based on the maintenance of manageable financial leverage.
Factors that could lead to an upgrade of the rating:
- Significant growth in total wealth
- Material increases in property tax base, resulting in substantially larger scale
Factors that could lead to a downgrade of the rating:
- Increase in leverage, with total cash and investments to adjusted debt dropping toward 2.5x
- Inability to maintain at least high-teens EBIDA (Earnings Before Interest, Depreciation, and Amortization) margins, supported by favorable enrollment and tax revenue
- Indication of unwillingness to renew or honor the lease supporting the COPs
Methodology and Regulatory Disclosures
The principal methodology used in these ratings was published in July 2024 (log-in required).
Visit the Moody's website for additional regulatory disclosures for each credit rating, updates on changes to the lead rating analyst, and to the Moody's legal entity that issued the rating.
About JCCC
JCCC embraces a mission of inspiring learning to transform lives and strengthen communities, a direction that has endured since the College opened its doors in 1969. The College is fully accredited by the Higher Learning Commission and committed to offering accessible, high-quality education from a main campus and multiple satellite locations. JCCC is devoted to enriching lives by meeting individual, community, and workforce needs in a welcoming and supportive environment.
Serving Johnson County, Kansas, and the entire Kansas City metropolitan area, JCCC supports the educational and career goals of students through more than 100 degree and certificate programs. Knowledgeable, dedicated faculty and staff work on behalf of more than 38,000 credit and continuing education students in a stimulating academic community.
CONTACT:
Emma Swinney
Public and Media Relations Coordinator
eswinne1@jccc.edu
913-469-8500, ext. 4949
Chris Gray
VP, Strategic Communications & Marketing
chrisgray@jccc.edu
913-469-8500, ext. 7623
###