Standard & Poor's Ratings Services said it raised its rating on Hoosic Valley Central School District, N.Y.'s general obligation debt one notch to AA-minus from A-plus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's strong local economy and maintenance of very strong finances despite increasing retirement benefit costs over the past few fiscal years.
"Although we do not expect to change the rating within the outlook's two-year period, if financial performance were to deteriorate, leading to lower financial reserves, or if the local area economy were to weaken, we could lower the rating," said Standard & Poor's credit analyst Anthony Polanco. "At the same time, with all else constant, if wealth and income were to improve and if the district were to maintain positive operating performance while reducing pension and other postemployment benefit costs, resulting in higher reserves, we could raise the rating."
The stable outlook reflects Standard & Poor's opinion of the district's stable local economy with access to the diverse employment network of the Albany-Schenectady-Troy metropolitan statistical area.
The rating service believes the district's very strong fund balance and strong wealth and income further support the rating. Standard & Poor's also believes the district's increasing pension and other postemployment benefit costs, which could pressure finances, currently limit the rating.
The district's faith-and-credit-and-taxing-authority pledge secures the bonds. The New York State Aid Intercept program provides additional bond security.
