Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on Boyden-Hull Community School District, Iowa's general obligation bonds.
The outlook is stable.
"The higher rating reflects our view of the district's improved financial position," said Standard & Poor's credit analyst Blake Yocom, "bolstered by management's anticipation of general fund surpluses for fiscal years 2013 and 2014."
The rating reflects the district's: stable economy with continued low county unemployment; good incomes and strong market value per capita; very strong general fund reserves; and low debt burden, coupled with rapid amortization.
Partly offsetting these strengths is the district's lack of formal financial management policies in most key areas.
The district's unlimited-tax full faith and credit GO pledge secures the bonds.
Boyden-Hull Community School District serves an estimated population of 4,270 in the cities of Boyden and Hull in Sioux County, as well as unincorporated land in Lyon County.
"The stable outlook reflects our view that the district's controlled spending, coupled with at least stable enrollment, will likely allow it to maintain stable operations and at least strong reserves," added Yocom.