Standard & Poor's Ratings Services said it raised its school issuer credit (ICR) rating on Southeast Local School District, Ohio's series 2011 classroom facilities improvement refunding bonds to AA-minus from A-plus.
At the same time, Standard & Poor's affirmed its AA enhanced rating on the district. The outlook on both ratings is stable.
"The higher rating reflects the district's stable reserves at levels we consider very strong," said Standard & Poor's credit analyst Steffanie Dyer.
The AA enhanced rating reflects the district's eligibility for, and participation in, the Ohio credit enhancement program. The program provides school bonds with added security from a state aid withholding mechanism that has strong statutory provisions. On state approval, the agreement between the state and local school district for participation in the program is irrevocable as long as any program debt is outstanding.
"The AA-minus school ICR reflects the district's own credit quality, including our view of its very strong reserves and low overall net debt burden," said Dyer.
Other factors include its access to the larger and more diverse Akron and Cleveland metropolitan area economies; and strong income indicators.
The district's unlimited-tax GO pledge secures the bonds.
