Standard & Poor’s raised its issuer credit rating to AA-plus from AA on general obligation bonds issued by Ann Arbor Public Schools.
The ratings agency cited the district’s strong financial performance, diverse economic base that benefits from the University of Michigan, and low debt burden.
The upgrade comes as the district plans to sell $17.7 million of general obligation school building and site bonds.
“While the district could have some reductions in its general fund balance from its current level, its good management oversight should help to keep reserve levels near its target of two months’ expenditures,” wrote Standard & Poor’s analyst Scott Garrigan in a report on the upgrade.
The school district services the city of Ann Arbor and several surrounding communities, with a total population of around 177,000, and reports a total enrollment of 16,404.
