Standard & Poor's Ratings Services said it raised its issuer credit rating (ICR) on Kansas City Public Schools (KCPS), Mo. one notch to A-plus from A.
At the same time, Standard & Poor's raised its long-term rating on Kansas City School District Building Corp.'s series 2009 and 2010 leasehold revenue qualified school construction bonds, issued on behalf of KCPS, one notch to A from A-minus. The outlook is stable.
The raised ratings reflect Standard & Poor's view of KCPS' consistently balanced operations supporting very strong reserves, coupled with the district's improved score under the Missouri School Improvement Program; this includes the recent awarding of provisional accreditation status (the district was previously unaccredited).
"The stable outlook reflects our expectation that the district will remain at least provisionally accredited, and that it will continue to operate with very strong reserves. Stability rests in our view of the district's good financial management practices and policies, and its demonstrated ability to make cuts to offset declining enrollment," said Standard & Poor's credit analyst John Sauter. "We do not anticipate lowering the rating within the two-year outlook period, as we expect very strong reserves and good management conditions to continue. Though not expected, the loss of provisional accreditation could have a negative impact on the ratings. Conversely, improved enrollment and full accreditation, if realized, could lead to higher ratings."
KCPS covers 68 square miles within Kansas City and serves an estimated 192,379 residents.
