Standard & Poor's Ratings Services said it has raised its long-term rating, underlying rating and school issuer credit rating on Delhi Central School District, N.Y.'s general obligation bonds to A-plus from A.
"We based the upgrade on our opinion of the district's increased reserves following several years of net operating surpluses due to conservative management practices," said Standard & Poor's credit analyst Lindsay Wilhelm. "We also expect the district will likely maintain its fund balance at strong levels," said Wilhelm.
The higher rating also reflects Standard & Poor's assessment of the district's stable, agricultural, and residential local economy with good income levels. In addition, the district has a low overall net debt burden when including building aid, according to Standard & Poor's.
The stable outlook reflects Standard & Poor's view of the district's stable local economy and tax base as well as consistently good financial performance, despite a challenging fiscal environment. Standard & Poor's does not expect to revise the rating during the two-year outlook horizon based on its expectation that the district's revenue base will likely stabilize, which should contribute to the maintenance of strong reserve levels. However, if the district is not able to maintain structurally balanced operations, putting pressure on reserves, a lower rating is possible.
The district's faith and credit GO pledge secures the bonds. The New York State Aid Intercept Program, under section 99-b of the state finance law, provides additional security.
Delhi Central School District serves an estimated population of 7,600 in Delaware County and consists of the towns of Andes, Bovina, Delhi, Franklin, Hamden, Forthright, and Meredith.