Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating on Berkeley County School District, S.C.'s general obligation debt one notch to AA from AA-minus.
The rating service also raised its long-term rating and SPUR on the district's appropriation debt one notch to AA-minus from A-plus. The outlooks are stable.
The upgrades reflect Standard & Poor's opinion of the district's continued economic growth and strong financial profile. The district has shown the ability to produce positive operations; this led to an overall increase in reserves through continued growth within the district, coupled with the maintenance of a moderate debt profile.
At the same time, Standard & Poor's affirmed its AA long-term rating, with a stable outlook, reflecting the strength of the South Carolina State Aid Intercept program.
"If the district's economy were to show continued growth with an increase in income factors, coupled with positive operations that lead to reserve growth and the maintenance of a moderate debt profile, we could raise the rating," said Standard & Poor's credit analyst Timothy Barrett. "Although we do not expect this to happen, if the district cannot produce balanced operations, causing a reserve drawdown, we could lower the rating. We, however, do not expect to change the rating within the two-year outlook period."
