Standard & Poor's Ratings Services said it raised its school issuer credit rating on Montgomery Independent School District, Texas' general obligation debt one notch to AA-minus from A-plus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the district's improved financial performance to very strong levels and excellent economic profile.
Standard & Poor's also affirmed its AAA program rating, with a stable outlook, on the district's debt, reflecting the strength of the Texas Permanent School Fund bond guarantee program. The stable outlook on the program rating reflects Standard & Poor's assessment of the strength and liquidity of the Texas Permanent School Fund.
"We believe that what we regard as the district's conservative budgeting practices will likely allow management to maintain its very strong finances and that additional capital needs will likely remain manageable. We also believe the district's access to the Houston metropolitan statistical area provides additional stability to the area," said Standard & Poor's credit analyst Jim Tchou. "For these reasons, we do not expect to change the rating during the two-year outlook period."
