NEW YORK - Standard & Poor's Ratings Services said it has raised its issuer credit rating (ICR) on Chesterfield County School District, S.C.'s general obligation (GO) debt to A from BBB-plus, reflecting the district's improved financial position over the past five fiscal years, despite a modest fund balance drawdown projected for fiscal 2010, as well as revisions to Standard & Poor's criteria. The outlook is stable.
At the same time, the rating service assigned its A ICR to the district's $25.855 million GO refunding bonds series 2010.
The A ICR also reflects Standard & Poor's view of the district's: conservative budgeting practices, which contribute to strong fund balance levels; and moderate debt levels with limited future capital needs.
In Standard & Poor's opinion, a high unemployment rate and state funding pressure temper these strengths.
"We expect that the district will make the adjustments necessary to offset reductions in state funding so as to maintain at least what we would consider a good financial position," said Standard & Poor's credit analyst Matthew Stephan.
The district will use the bond proceeds to retire its series 2002 GO bonds. The AA rating on the series 2010 GO refunding bonds is based on security provided by the South Carolina State Aid Intercept Program.
Chesterfield County School District, with an estimated population of 43,249, is located in northeastern South Carolina, in Chesterfield County. The district operates two primary schools, six elementary schools, three middle schools, one intermediate school, and four high schools with a total enrollment of 7,577 in fiscal 2010.
