Maricopa Co. USD 60 Downgraded to A-Plus by S&P

Standard & Poor's Ratings Services said it lowered its long-term rating to A-plus from AA-minus on Maricopa County Unified School District No. 60 (Higley), Ariz.'s existing general obligation debt.

At the same time, Standard & Poor's lowered its long-term rating to A from A-plus' on the district's series 2012 education facility revenue bonds, issued by the Phoenix Industrial Development Authority. Standard & Poor's assigned its A-plus rating to the district's series 2015 school improvement and refunding general obligation bonds. The outlook is stable.

"The lowered rating reflects our view of the district's only adequate general fund reserve levels at the end of fiscal 2014," said Standard & Poor's credit analyst Jaime Trejo. "The rating further reflects our view of the district's reduced budgetary flexibility through the tapering down of its maintenance & operations override, which local voters did not extend in November 2013."

The series 2015 bonds are being issued to improve and construct school facilities. The bonds will also refund a portion of the district's series 2005 B and C, 2006D, 2007B, and 2008C bonds.

Maricopa County Unified School District No. 60 (Higley) encompasses 24 square miles and serves an estimated population of about 68,000 in Gilbert and Queen Creek, about 35 miles southeast of Phoenix. Gilbert is primarily a bedroom community, with residents having access to the broad and diverse Phoenix regional economy.

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