Standard & Poor's Ratings Services said it has raised its underlying rating on Mattituck-Cutchogue Union Free School District, N.Y.'s general obligation debt two notches to AA from A-plus.
At the same time, Standard & Poor's assigned its AA long-term rating to the district's 2014 GO bond series. The outlook for all issues is stable.
"We base the upgrade on the district's stable financial operations, which are supported by very strong levels of reserves, coupled with good financial management policies," said Standard & Poor's credit analyst Timothy Daley.
The AA rating also reflects the district's: affluent residential community, with a stable local economy that participates in Nassau and Suffolk counties' economy; very strong wealth and income and extremely strong market value per capita; strong financial position based on consistent financial performance; and low-to-high debt burden with limited additional capital needs.
The bonds are secured by a faith and credit pledge of the district. Bond proceeds will be used to finance the cost of reconstruction of the track at one of the district's buildings.
The stable outlook reflects Standard & Poor's opinion of the district's participation in the stable local economy. The district's very strong financial performance, limited capital needs, and affluent tax base remain stabilizing credit factors. In addition, district should continue to adjust expenses, as necessary, to maintain at least good available general fund reserves. As such, the agency does not expect to raise the rating over the outlook's two-year period.
Mattituck-Cutchogue Union Free School District, which has a population of 9,259 and covers 24 square miles, operates two schools with a current enrollment of 1,350. It is located on the north fork of Long Island in the towns of Riverhead and Southold in Suffolk County.
