Standard & Poor's Ratings Services said it raised its school issuer credit rating on Berkeley County School District, S.C.'s general obligation bonds to AA-minus from A-plus.
It also raised the rating on the district's appropriation debt to A-plus from A. The outlook on these ratings is positive.
In addition, Standard & Poor's assigned its AA rating and stable outlook, and AA-minus ICR and positive outlook to the district's series 2013B GO refunding bonds. The agency affirmed the AA long-term rating, which reflects the strength of South Carolina's State Aid Intercept program.
"The upgrade is due to the maintenance of very strong general fund reserves despite a heavy reliance on state aid," said Standard & Poor's credit analyst Hilary Sutton. "We believe the district's economic and financial profile could already support a higher rating but for the uncertainty of the federal sequester and its potential impact on defense spending, which is a key local employment sector. Should the local economy remain unimpeded by any budget cuts, automated or otherwise, a higher rating could be justified, all other things being equal."
The Berkeley County School District is a growing district in southeastern South Carolina near Charleston. It is coterminous with the 1,229 square-mile Berkeley County, making it the third largest of 86 school districts in the state by land area.