Standard & Poor's Ratings Services said it raised its school issuer credit rating on Middle Township Board of Education (MTBOE), N.J.'s general obligation refunding school bonds by one notch to A-plus from A.
This action is based on MTBOE's strong operating performance resulting in fund balance growth. The outlook is stable.
The raised rating reflects MTBOE's: very strong, albeit declining, wealth levels; strong income levels; and diverse tax base.
These strengths are offset, however, by the potential for financial pressure if state funding levels decline.
"The stable outlook reflects our view of a township that has very strong wealth levels and has consistently produced operating surpluses amid a strained financial environment. The wealth levels are higher than the township's similarly-rated peers, which lends some stability to the rating," said Standard & Poor's credit analyst Steve C. Tencer. "State financial pressures do pose an ongoing risk to the township, but that risk is consistent with the existing rating, in our view. We do not anticipate any rating changes during the two-year outlook period."
Middle Township is located in Cape May County in southern New Jersey and has a population of approximately 18,800 residents.
