Piscataway Township BOE, N.J., Upgraded to AA-Minus by S&P

Standard & Poor's Ratings Services said it has raised its issuer credit rating (ICR) on Piscataway Township Board of Education, N.J.'s outstanding general obligation (GO) debt to AA-minus from A-plus.

"The upgrade is based on the school district's strengthening financial position, which is currently at good levels due to surpluses in each of the past three fiscal years," said Standard & Poor's credit analyst Danielle Leonardis. The district's full-faith-and-credit GO pledge secures the bonds. The New Jersey Fund for the Support of Free Public Schools provides additional security.

"The ICR reflects our opinion of the district's general creditworthiness, including its primarily residential area, projected positive general fund operations in next two fiscal years, and moderate debt burden on a per capita basis," added Leonardis.

The stable outlook reflects Standard & Poor's opinion of the district's participation in the broader New York City employment base, extremely strong wealth indicators, and no additional debt plans. Further, the agency believes the management will report sound financial performance and maintain reserves at good-to-strong levels.

Continued strengthening of reserves to a level considered very strong while keeping other factors constant could lead to a raise in the rating. Conversely, if operating performance was to deteriorate significantly and if reserves were to decrease due to state revenue climate, it could lower the rating; however this is expected to happen within the outlook horizon.

The school district (population: 56,774) is coterminous with the township of Piscataway, a suburban-industrial community in Middlesex County in central New Jersey. Piscataway is roughly 40 miles southwest of New York City. The district operates six elementary schools, three middle schools and one high school with a total enrollment of 7,334 in 2014, a 1% increase since 2010.

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