NEW YORK - Standard & Poor's Ratings Services said it has raised its issuer credit rating (ICR) and underlying rating (SPUR) on Lake Dallas Independent School District, Texas' general obligation (GO) bonds to AA-minus from A-plus, reflecting the district's limited future capital needs, coupled with a consistently strong financial position. The outlook is stable.
At the same time, the rating service assigned its AA-minus ICR to the district's $6.565 million series 2010 unlimited-tax refunding bonds.
The AA-minus unenhanced ratings reflect Standard & Poor's view that the district is: a mature school district with stable enrollment trends, participating in the diverse Dallas-Forth Worth consolidated metropolitan statistical area economy; and good wealth and income levels.
These factors are offset, in part, by Standard & Poor's view that the district has: a high overall debt burden, and elevated carrying charges.
The stable outlook on the unenhanced ratings reflect the district's sound property tax base and stable student enrollment trends, which significantly limits the district's future capital needs. The stable outlook also reflects Standard & Poor's expectation that district officials will continue to make the necessary budget adjustments to maintain good fund balance levels in line with their reserve policy.
An unlimited ad valorem tax on all taxable property within the district secures the bonds. Officials will use the bond proceeds to refund a portion of the district's outstanding bonds.
Lake Dallas Independent School District, with a population of about 22,342, is in Denton County about 25 miles north of Dallas and about five miles south of Denton (AA/Stable GO rating). The district serves Corinth, Lake Dallas, Hickory Creek, and Shady Shores.
