Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating on Bernards Township Board of Education, N.J.'s general obligation bonds to AAA from AA-plus.
At the same time, it assigned its AAA long-term rating and underlying rating to the district's series 2015 GO refunding bonds. The outlook is stable.
"The upgrade is based on the district's strong financial performance and growth in total reserves during a period of overall economic pressure and tax levy constraints," said Standard & Poor's credit analyst Ruth Ducret.
The board's full-faith-and-credit pledge secures the GO bonds. The New Jersey Fund for the Support of Free Public Schools program provides additional bond security. Officials intend to use bond proceeds to refund the board's series 2007 GO school bonds for present value savings. There is no extension of maturity and savings are taken evenly over the maturity schedule.
The district is coterminous with Bernards Township, which covers 24.5 square miles and serves a population estimate of 27,000 in Somerset County. It operates four elementary schools, one middle school, and one high school. Enrollment was 5,720 in the 2013-2014 school year.
