Standard & Poor's Ratings Services said it raised its underlying rating for credit program to AA-plus from AA on King County School District No. 414 (Lake Washington), Wash.'s unlimited-tax general obligation bond outstanding.
It also raised to AA-plus from AA its underlying rating (SPUR) on the district's GO bonds outstanding and the long-term rating on the district's limited general obligation (LGO) bonds outstanding.
"The rating change reflects our view of the substantial and continuing strengthening in the district's tax base with a 17% rise in assessed value in 2015 and the demonstrated willingness of voters to support supplemental revenues for operations and capital improvements through high and low points in the economic cycle," said Standard & Poor's credit analyst Kaiti Wang.
Standard & Poor's also assigned its AA-plus underlying rating for credit program and program rating to the district's 2015 UTGO refunding bonds, which have credit enhancement under the state program. The outlook is stable.
The district serves an estimated population of 185,649. The district's 75-square-mile area encompasses portions of the King County communities of Redmond, Kirkland, and Sammamish, as well as smaller portions of other cities. "We anticipate that the district will continue to maintain its healthy financial performance, with substantial revenue support from local voter-approved levies, and keep reserves we consider at-least good during the two-year outlook horizon," added Wang.
The ratings agency does not expect to raise the ratings during that timeframe given the district's reserve levels although it could consider higher ratings should the reserves climb to and be maintained at levels it considers very strong.
