Standard & Poor's Ratings Services said it raised its rating on Los Angeles Community College District, Calif., to AA-plus from AA.
The outlook is stable.
"The higher rating reflects our view of district management's continued strong commitment to maintaining what we consider a good reserve level," said Standard & Poor's credit analyst Lisa Schroeer.
At the same time, it assigned its AA-plus rating to the district's upcoming 2015G tax-exempt and H taxable bonds and its 2015 refunding bonds. The outlook is stable.
"The rating reflects our opinion of the district's good financial performance, with a history of strong general fund reserves," said Schroeer.
Other factors include its: large and diverse property tax base in the strong Los Angeles economy; and operational flexibility, with an ability to reduce class sections and the curriculum, if necessary, an operational feature not shared by K-12 districts.
Somewhat tempering those strengths are the district's significant capital plan with annual issuance of roughly $500 million per year, which, if not met by commensurate tax base growth, could have a negative impact on the overall debt burden. The rater does not anticipate the projects adding significantly to operations for the district beyond bond program management.
