Standard & Poor's Ratings Services said it raised its underlying rating for credit program on Walker-Hackensack-Akeley Independent School District No. 113, Minn.'s general obligation alternative facilities debt one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's consistently balanced financial operations, which have increased reserves to a level the rating service considers very strong.
"If the district were to draw down reserves to levels we no longer consider very strong, we could lower the rating," said Standard & Poor's credit analyst John Sauter. "On the other hand, if the district were to continue to run surpluses, if it were to formalize more of its financial policies, and if the local economy were to improve, we could raise the rating. Due to the current financial profile, however, we do not expect to change the rating within the two-year outlook period."
The district's full-faith-and-credit-and-power pledge to levy direct general ad valorem taxes secures the bonds.
