Standard & Poor's Rating Services said it raised its long-term rating to A-plus from A on Luther Burbank School District, Calif.'s existing general obligation bonds.
The outlook is stable.
"The upgrade is due to the district's consistently very strong financial position and projected continued very strong reserves despite some expected drawdowns," said Standard & Poor's credit analyst Alyssa Farrell.
Unlimited ad valorem taxes levied on taxable property within the district secure the GO bonds. The county's Board of Supervisors has the power and obligation to levy these taxes at the request of the district for the bonds' repayment.
The one-square-mile single-school district is located in the city of San Jose in Santa Clara County and serves about 4,600 residents.
