Standard & Poor's Ratings Services said it raised its underlying rating from credit program to A-plus from A on San Felipe Del Rio Consolidated Independent School District, Texas' previously issued general obligation debt.
The outlook is stable.
At the same time, it assigned its A-plus underlying rating for credit program and AAA enhanced rating to the district's series 2015 unlimited-tax refunding bonds GO debt.
"The rating action is based on our view that the district will be able to maintain its historically and projected very strong reserves and low carrying charges coupled with faster-than-average amortization and limited major capital needs," said Standard & Poor's credit analyst Brian Marshall.
Officials will use the series 2015 bond proceeds to refund a portion of the district's debt for savings without extending maturities.
The stable outlook on the AAA enhanced program rating reflects the Texas Permanent School Fund's strength and liquidity. The stable outlook on the underlying rating for credit program reflects the anticipation that during the next two years, given substantial state funding support, the district will maintain its very strong financial position despite the limited economy.
