Kankakee Schools Raised

Standard & Poor’s last week upgraded Kankakee School District No. 111’s general obligation rating to A from A-minus in recognition of its improved fiscal performance and good management practices.

The upgrade affects about $15 million of debt, including the district’s upcoming $3.5 million new-money and refunding GO sale.

Kankakee benefits from its proximity to the Chicago region, its strong financial position, and an ongoing diversification of its economy with modest tax base growth, analysts said. Offsetting some of its strengths is a high unemployment rate and merely adequate income and wealth levels.

The rating agency assigns a stable outlook, which reflects the improved financial position that is boosted by good reserves and strong management.

“These factors are particularly important given the district’s reliance on state and federal aid in the face of local revenues that are constrained by property tax caps and income levels that are only adequate,” analyst Adam Watson wrote.

A refunding piece is being issued for savings and new money to finance health and safety improvements. The district is located about 56 miles south of Chicago with an enrollment of 5,200 students.

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