Standard & Poor's Ratings Services said it raised its underlying rating on Canajoharie Central School District, N.Y.'s outstanding general obligation debt to A-plus from A, based on the school issuer credit rating being higher than the state program rating.
At the same time, Standard & Poor's assigned its A-plus long-term rating and school ICR to the district's 2014 series GO refunding bonds. The outlook is stable.
"The rating reflects what we view as the district's good-to-adequate income and strong wealth levels and sound financial performance resulting in a strong financial position," said Standard & Poor's credit analyst Timothy Little. Another factor is its very low overall net debt burden due to the high amount of state building aid reimbursement, coupled with limited future capital needs.
Offsetting these strengths are the district's stable, but limited local economy and high reliance on state aid for revenue. The district's combined debt service and retirement contribution carrying charge is elevated.
The district's faith-and-credit GO pledge secures its debt. The New York State Aid Intercept program, pursuant to section 99-b of the state finance law, provides additional security. Officials plan to use bond proceeds to refund the district's series 2005 bonds. There is no extension of maturity and savings are taken evenly over the life the bonds.
The Canajoharie Central School District is a pre-K to 12 district in upstate New York in central Montgomery County, about 40 miles west of Albany.
