NEW YORK - Standard & Poor's Ratings Services said it has raised its issuer credit rating (ICR) on Fairfield Independent School District, Texas' general obligation (GO) debt two notches to A-plus from A-minus.
At the same time, Standard & Poor's affirmed its AAA program rating on the district's GO debt outstanding based on the guarantee of the Texas Permanent School Fund.
Standard & Poor's also assigned its A-plus long term rating to the district's $12 million series 2008 GO bonds. The outlook on all ratings is stable.
"The higher rating reflects the district's stable financial performance and a consistently strong general fund balance," said Standard & Poor's credit analyst Hilary Sutton.
This series constitutes the first installment of a $21 million authorization that district voters approved May 10. Proceeds will be used to build 10 additional classrooms at the high school.
Management expects the next installment, which will fund the construction of an intermediate school, to be issued in March 2009.
Fairfield Independent School District provides kindergarten-grade 12 educational services to a population of about 9,250 in sections of Freestone and Navarro counties.
The district's 460-square-mile territory includes the city of Fairfield, Texas, which is the Freestone County seat and 89 miles southeast of downtown Dallas via Interstate 45. Local economic activity is centered in agriculture and mineral production, and principal employers include a lignite mining corporation, electric generation plant, and minimum-security prison.
Management reports that increased oil and gas activity has created jobs, which in turn has stimulated student enrollment growth. The district's average daily attendance increased to 1,694 in fiscal 2008 from 1,626 in fiscal 2005, and management expects similar growth to continue.
The stable outlook on the program rating reflects the outlook of the Texas Permanent School Fund. The stable outlook on the ICR reflects S&P’s expectation that debt levels will remain manageable and that management will maintain healthy general fund reserves.
