Standard & Poor's Ratings Services said it raised its issuer credit rating on Brock Independent School District, Texas' existing general obligation debt to A-plus from A.
At the same time, Standard & Poor's assigned its AAA program rating and A-plus school issuer credit rating (ICR to Brock ISD's series 2013 unlimited-tax school building bonds. Standard & Poor's also affirmed its AAA enhanced program rating on the district's outstanding GO debt. The outlook on all ratings is stable.
"The upgrade reflects the district's commitment to maintaining very strong general fund reserves and management's conservative budgeting practices," said Standard & Poor's credit analyst Daniel Cuddy.
The AAA enhanced rating reflects the credit enhancement provided by the Texas Permanent School Fund.
The ICR reflects the district's: access to jobs in the Fort Worth-Arlington metropolitan area; very strong incomes and wealth; and very strong financial performance and position.
These strengths are somewhat offset by the district's: moderately high overall net debt burden as a percentage of market value; and extended amortization schedule.
The district's unlimited-tax pledge secures the bonds. Officials plan to use bond proceeds to upgrade school instructional and athletic facilities.
Approximately 40 miles west of Fort Worth and encompassing 105 square miles in Parker County, Brock ISD serves a population estimated at 5,315. The unincorporated community of Brock is within the district's boundaries.
"The stable outlook on the program rating reflects our opinion of the Texas Permanent School Fund guarantee and the fund's strength and stability," added Cuddy, "and the stable outlook on the ICR reflects our opinion that we do not think we will change the ICR over the outlook's two-year period because we recognize that management will likely remain committed to maintaining what we consider very strong reserves."
