Fitch Ratings said it has upgraded to A-plus from A Pilot Point Independent School District, Texas' $95,000 outstanding unlimited tax school building and refunding bonds, series 2003 and $2.4 million outstanding ULT refunding bonds, series 2005.
The rating outlook is stable.
The bonds are secured by an unlimited ad valorem tax levied against all taxable property within the district.
The district ended fiscal 2012 with increasingly strong fund balance levels and ample liquidity. The strong financial profile is a material improvement from depleted reserves reported at the close of fiscal 2006.
Management has taken judicious steps to restore the financial health of the district and has successfully replenished financial reserves. Management appears committed to maintaining reserves and liquidity at strong levels.
The district's tax base is mostly rural and agricultural, and large agricultural exemptions constrain taxable assessed value (TAV) growth.
The economic base, while limited in breadth, benefits from its proximity to the labor markets of the broader Dallas-Fort Worth metroplex area and Denton County.
