Fitch Ratings said it has upgraded the following Natomas Unified School District, Calif., general obligation (GO) bonds: $36.2 million GO refunding bonds, series 1999, and GO bonds (election of 2002), series 2004B to BBB-plus from BBB.
The rating outlook is revised to positive from stable.
The bonds are secured by the district's full faith, credit, and unlimited ad valorem property tax pledge.
The rating upgrade reflects the district's much improved financial position, a strong new management team yielding more productive labor relations, and reduced state funding volatility.
The outlook revision to positive from stable reflects the district's better than expected fiscal 2012 general fund performance and out year projections. Fitch expects the district will continue to outperform its projections.