Standard & Poor's Ratings Services said it raised its program rating on Crown Point Multi-School Building Corp., Ind.'s existing debt four notches to AA-plus from A and affirmed its AA-minus underlying rating on the building corporation's existing debt, issued for Crown Point Community School Corp.
The outlook is stable for all ratings.
"The higher program rating reflects improvement in the ratio of state aid to maximum annual debt service (MADS) to over 2x," said Standard & Poor's credit analyst Scott Nees.
The AA-plus rating is based on the school corporation meeting our Indiana State Aid Intercept program rating criteria. The credit characteristics of the rating are supported by the availability of state aid to be intercepted to cover debt service payments.
"The AA-minus underlying rating reflects our view of the school corporation's strong cash reserves that have been bolstered in recent years following the successful passage of a referendum levy," said Nees. Other factors include its: growing residential market and access to chicago's deep and diverse economic base; growing tax base and very strong per capita market value; and stable enrollment with growth projected, which contributes to stability in operating revenues.
The above strengths are offset, in part, by the school corporation's moderate debt burden, elevated debt service carrying charges, and economic indicators that, while generally strong, are low relative to those of credits at the next higher rating.
