Standard & Poor's Ratings Services said it raised its underlying rating on Duneland School Corp., Ind.'s outstanding debt to AA-minus from A-plus.
"The upgrade reflects the school corporation's improved financial position and our expectation that the improvements are likely sustainable," said Standard & Poor's credit analyst Scott Nees.
At the same time, it assigned its AA-minus underlying rating and AA-plus program rating to the school's series 2015 general obligation bonds and affirmed its AA-plus and A program rating on the school's existing debt. The outlook on all ratings is stable.
The program rating is based on the school district 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 district's strong reserves on a cash basis of accounting, bolstered in recent years by the passage of a seven-year referendum levy," said Nees.
