NEW YORK - Fitch Ratings said it upgraded to AA from AA-minus the underlying rating on the $149.2 million in outstanding unlimited tax (ULT) bonds of Aledo Independent School District, Texas.
The rating outlook is stable.
The rating upgrade reflects continued solid financial performance, benefiting from conservative fiscal management. In addition, financial flexibility is enhanced by recent strong voter support for additional operating tax margin.
After recording double-digit annual gains, taxable value growth has slowed reflecting the weakened housing market. However, prospects for future growth appear favorable.
While there is some taxpayer and industry concentration, the district remains primarily residential in nature.
Typical of many fast growing Texas school districts, debt levels are above average and the pace of principal amortization is slow. Given the recent enrollment trends, debt issuance plans have also slowed.
The district benefits from its proximity to the broad employment base of Fort Worth. In addition, area wealth levels are above average.
