Standard & Poor's Ratings Services said it raised its underlying rating on Decatur County School District, Ga.'s general obligation bonds and Decatur County School Building Authority, Ga.'s revenue bonds to A-plus from A.
At the same time, it assigned its A-plus long-term rating to the authority's series 2015 revenue refunding bonds. The outlook for all the ratings is stable.
At the same time, it affirmed its AA-plus long-term rating on the school district's GO bonds. The AA-plus rating reflects the district's participation in the Georgia State Aid Intercept Program.
"The upgrades reflect the ongoing improvement in the district's financial position and reserves," said Standard & Poor's credit analyst Danielle Leonardis.
The authority's revenue bonds (including the series 2007 bonds) are secured by an intergovernmental contract, whereby the school district pledged its full faith and credit to secure payment to the revenue bonds. Under the contract, the district agrees to levy an ad valorem property tax, limited to 20 mills, to make contract payments. The series 2015 as well as the series 2007 bonds are not secured by the Georgia State Aid Intercept Program.
A special 1% local option sales tax (SPLOST) and the school district GO secure the bonds. The Georgia State Aid Intercept Program provides additional security.
