Standard & Poor's Ratings Services said it raised its long-term rating on Clinton Central School District, N.Y.'s series 2010 general obligation school district bonds one notch to A-plus from A.
At the same time, Standard & Poor's assigned its A-plus underlying rating to the bonds.
"These actions reflect our view of a change of security for the bonds to a pledge of the issuer," said Standard & Poor's credit analyst Steve Tencer. "Previously, the rating was based solely on the bonds' New York State Aid Intercept Program enhancement."
Standard & Poor's also assigned its A-plus rating to the district's series 2015 GO bonds. The outlook on all issues is stable.
"The stable outlook reflects our opinion of a district that has strong income levels, and which has benefited from positive operations in recent years, with an operating surplus expected for fiscal 2015," Tencer added. "We believe management will likely maintain reserves at levels we consider strong; as such, barring financial deterioration that leads to a significant decline in reserves, we do not foresee downward rating pressure within the two-year outlook horizon. Conversely, given the current mix of credit factors, the district's wealth levels, demonstrated by market value per capita, limit upward rating potential during the outlook horizon."
Clinton Central School District encompasses the towns of Kirkland, Westmoreland, Marshall, Vernon, Paris, New Hartford, and Whitestown, all in Oneida County. The district, located just southwest of the city of Utica, covers approximately 38 square miles and has an estimated 11,754 residents (2013 U.S. Census estimate), up roughly 3.6% over four years.
