Little Miami Local SD, Ohio, Raised to A by S&P

Standard & Poor's Ratings Services said it has raised its underlying rating on, Little Miami Local School District, Ohio's outstanding general obligation debt to A from BBB-plus.

The outlook is stable.

"The upgrade reflects our opinion of the district's improved financial position aided by the district's significant expenditure cuts over the past four years, and passage of a five-year 13.95 mill emergency levy in November 2011 that has enabled Ohio to release the district from a state of fiscal emergency in May 2013," said Standard & Poor's credit analyst Errol Arne. In addition, the current five-year forecast depicts a positive cash balance through 2018.

The rating reflects the district's: access to Cincinnati and Dayton economic centers; strong to very strong income levels and very strong market value per capita; and moderate overall debt burden.

The district's overall weak electorate support may affect its future financial position and limit these strengths.

The district's unlimited-tax and full-faith-and-credit GO pledge secures the bonds.

The stable outlook reflects Standard & Poor's view that the district will likely maintain its strong reserves during the outlook's two-year horizon and as such the agency does not expect to change the rating. Beyond the two-year outlook, if the district can maintain strong reserves while navigating through the electoral approval process, it could raise the rating. Conversely, if the weak voter history continues and reserves are materially affected, S&P could lower the rating.

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