Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating to AA-minus from A-plus on Lakeside Joint School District (Santa Clara County), Calif.'s general obligation bonds.

The outlook is stable.

"The raised rating reflects our view of the growth in the district's reserves during the last three fiscal years, as well as voters' passage of a new parcel tax, which provides additional revenue flexibility to the district," said Standard & Poor's credit analyst Chris Morgan.

The rating reflects the district's: very strong income indicators, and an economic base encompassing a sparsely populated mountainous area adjacent to Silicon Valley; available general fund position, which has been very strong as a percent of expenditures during the last three fiscal years; "basic aid" status, which allows the district to receive revenue above the state per-pupil funding formula limit and somewhat insulates the district from state funding fluctuations; and low overall net debt burden as a percent of market value.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.