Moody's Investors Service said it has upgraded Charleston County School District, S.C.'s outstanding general obligation debt to Aa1 from Aa2.
Concurrently, Moody's upgraded the district's outstanding installment purchase revenue bonds to Aa2 from Aa3.
The outlook is positive. The outstanding general obligation bonds are secured by the county's unlimited ad valorem tax pledge. The IPRBs are secured by Charleston County School District's annual installment payments on these obligations made pursuant to an agreement with Charleston Educational Excellence Financing Corporation, with additional security provided by a long-term leasehold interest in three essential district assets for 15 years beyond the term of the bonds.
The upgrade reflects the district's recently improved reserve levels, which have benefited from formal fiscal policies and conservative management.
The upgrade also incorporates the district's stable tax base that realized notable growth in recent years, despite the economic downturn.
The positive outlook reflects Moody's expectation that the district's financial position will remain strong despite continued enrollment growth and related capital needs due to management's demonstrated ability to grow reserves without a tax rate increase throughout the recession.
The outlook also reflects the strength in the tax base due to significant institutional presence and ongoing growth in manufacturing and technology sectors.
